For current homeowners looking to complete major renovations, the OTC loan program is available.
This means:
Flexibility to customize a payout or draw schedule to support a renovation draw schedule.
The ability to build interest carry into the payment with an interest reserve account and optional (not mandatory) contingency reserves.
A complete product menu for the end loan.
The ability to use the finished value of the home to calculate loan-to-value.
In some cases this allows a borrower to finance 100% of the cost.
For homebuyers looking to purchase and renovate a home, the product is the same with one exception: NCM will base the LTV on the acquisition cost rather than the final value.
If you purchase a home and tear it down we do not treat the loan as an OTC Rehab, NCM looks at the loan as a new build and will customize a draw schedule to accommodate demolition.
