Certified Funding
Certified is a referral relationship only. They are the lender. They provide the best renovation second lien that we've found. There is a calculation to come up with the amount of money they will lend. They are helpful on the phone and will walk you through a scenario.
Contact Names & Site Login:
Rates & Calculator:
Certified Submission Form:
Instructions for Second Lien Home Improvement Loans
Two options: Frost who will loan up to 100% of the loan, and Certified who will loan above 100% depending on the improvements.
Certified Funding Home Improvement Overview:
Certified Funding: Click the Logo Below For Their Rate Sheet
Loan Amount Calculation
Certified will use the lower of the appraised value or purchase price as the value. They will go to 125% of that value for the maximum home improvement loan amount.
Max Home Improvement Loan Amount Example
250,000 value times 1.25% = $312,500. Max Home Improvement is $312,500-$237,500 (Or Whatever the Loan Amount is) = $75,000 Max Home Improvement Loan immediately after closing.
Estimated Rates & Terms
Max 45% DTI, 15 or 20 Year Term, Fees estimated $645.00, Minimum Fico 700.
Certified is the Lender:
Certified will contact the borrower and do the full loan process on their own. They will use our appraisal and that's about all.
A Contractor is Required:
A General Contractor is required. This person can employ subs and must pay those sub contractors directly. Confirm the types of improvements with Certified.
Certified establishes the draw schedule prior to closing the HI Loan
Checks are cut for the draw disbursements during the renovation period. Changes are not allowed to the loan terms. Change orders must be paid in cash by the borrower.
Inspections:
An initial site inspection is completed by Certified to verify no work has been started on the project. No additional inspections are performed by Certified. If any work has started on the project then the deal is dead.
Closing Timeline
These loans take 3 weeks to 30 days to typically close. Permits can be pulled from the City during this processing time.
Most Important Takeaway
This loan requires a great relaionship between the Contractor and the Borrower. If there is not good clear communication there is a good chance for problems.