Dreamline Renovation HELOC
Tap into the future value of your home for your renovation project.
Our Dreamline Renovation HELOC is specifically designed to help home owners tap into their equity to renovate their home and make it the home of their "dreams."
Unlike our traditional HELOC, our Dreamline Renovation HELOC allows you to use up to 90% of the after-renovation value (minus any first-mortgage lien) of your home.
Additionally, you do not have to refinance or risk losing a low fixed rate on your first mortgage. The Dreamline Renovation HELOC is a second mortgage, leaving your existing first mortgage terms, rate, and payment untouched.
Whether you are planning a major renovation or want to add value to your home, we're here to help you accomplish your goals.
Financing is just one part of the construction/renovation process, but it's an extremely important step to have organized before you start your renovation project.
Discuss your plans with one of our experienced Loan Advisors to get started.
Angela Robertson
Senior Mortgage Loan Advisor
Phone: 240-581-5302
Fax: 301-497-8924
[email protected]
NMLS # 607628
Apply here
Sarah Stramella
Senior Mortgage Loan Advisor
Phone: 240-581-5303
Fax: 301-497-8924
[email protected]
NMLS # 1827053
Apply here
How does a Dreamline Renovation HELOC differ from a traditional HELOC?
With our traditional HELOC, there is a maximum amount available for you to borrow based upon the CURRENT value of your home. Homeowners typically tap into their HELOC for immediate needs to pay off high-interest debt, medical expenses, or home improvement projects. Having the line available at any time offers security, comfort and flexibility. However, a Drealine Renovation HELOC lets you borrow based upon the FUTURE renovated value of your home, which gives you more borrowing power to create the home of your dreams. If you need help identifying which type of HELOC is right for you, reach out to one of our Loan Advisors.
How do I know how much I can borrow?
In most cases, we can offer financing up to 90% of your home’s post construction future value—which includes your first mortgage (if any) and your new Dreamline Renovation HELOC. For example, if your property will be worth $800,000 and you owe $500,000 on your first mortgage, you may be eligible for a Dreamline Renovation HELOC up to $220,000 ($800,000 x 90% = $720,000. $720,000 - $500,000 [first mortgage balance] = $220,000). Keep in mind, this depends on several other factors, such as your loan approval, credit history and income.1 We recommend speaking with one of our Loan Advisors who can answer any questions you might have.
Do you charge any fees for the Dreamline Renovation?
Yes. There will be closing costs that vary based upon your loan amount and property location along with our processing fee of $300. We will also partner with a construction management vendor, and there will be an origination fee paid to them at closing.2
Is the financing process longer than a traditional HELOC?
Yes—the entire financing process for our Dreamline Renovation will take more time than a traditional HELOC. This is mainly due to the complex nature and paperwork required for construction, building permits, inspections and more. It’s best to have a conversation with one of our Loan Advisors about your project first. They can help you determine if our Dreamline Renovation HELOC is right for you and will then refer you to our construction management partner to proceed with getting your renovation project underway and approved. Each project is unique. We're here to help.
What is the maximum allowable construction period for the Dreamline Renovation HELOC?
Tower will allow a standard construction draw period of 12 months. We will consider monthly extensions as needed up to 18 months depending on the reason for the delays and the complexity of the project. There will be a fee of $500 for each monthly extension that is requested by the borrower and approved by Tower payable at the time of the approved extension.
How are funds disbursed after my loan closes?
During the construction period that can be up to 12 months, your home equity line of credit will be frozen. We will advance draws directly to your Construction Contractor in four equal disbursements at 25% of your line amount. After the final draw and when we're able to verify that the project is complete, your home equity line of credit will be available for you to continue to draw from for the remaining time available (For example: if your project was completed in nine months, you will have 14 years and three months remaining to utilize the available line amount on your home equity line of credit with Tower).
