Construction to Permanent Loan to Finance Reno

We are purchasing a 2-family in need of a gut renovation and plan to finance the purchase and the reno with a construction-to-permanent loan (where the construction costs are ultimately rolled into the mortgage). We are considering TD Bank, as well as a couple of brokers that work with smaller regional banks that offer this product. Does anyone have experience with these loans and if, so, any feedback on particular lenders, and/or any pitfalls or challenges we might encounter, whether in the underwriting process and during the construction phase?

mstamib

in General Discussion 5 years and 11 months ago

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chinyere.ezie | 5 years and 11 months ago

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Try First Republic Bank. We are currently doing a gut renovation of a 2 family brownstone where First Republic Bank provided the funding for the purchase and renovation for our client. After construction the “construction portion” of the loan will be rolled into the mortgage, This is the third project we have done where First Republic provided these services. They are quite diligent in monitoring the payments to the contractor as they inspect monthly before they release funds. It is a extra check to make sure the contractor stays on schedule and does not get ahead in payments. The drawback is they do not provide funds for contractor deposit on contract signing or deposits for any materials that are not on site. It takes a financially secure contractor to work with them .

Guest User | 5 years and 11 months ago

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Had a TERRIBLE experience with TD Bank regarding a construction-to-permanent loan, but it may have just been the bizarrely incompetent loan officer we were dealing with. Having said that, ultimately the deal went through, and we’re currently at the very beginning of the reno process, so I can’t give you info about that. We didn’t have a choice to go elsewhere for this type of loan due to the building’s CofO, which was different from yours– but I would NEVER do this again with TD. Again, this was just my experience. Citizen’s Bank also does this type of loan (I believe for 2-family homes), and there were one or two other places that offered this, so I’d recommend looking into those. Now, I did hear from our real estate attorney’s friend that Anthonio Ciccullo at TD was good, but we were already entangled with the other loan officer… so maybe try calling him?