Remodeling Financing

The remodeling financing is very useful when one wants to remodel a property and does not have all the capital that is necessary for that.

The financing for remodeling is not widely used; only a few know this credit line exists.

The benefits offered are innumerous: the financing for remodeling has a low interest rate when compared to financing obtained in financial institutions and/or personal credit institutions.

In order to obtain the financing for remodeling works, it is necessary to have a finished project for the remodeling. All the documentation must be up-to-date in regards to government agencies; without that, it is impossible to make the remodeling financing.

The interest rates offered for the remodeling financing vary from 10% to 16% p.a., depending on the institution. The credit line for remodeling financing offered by Caixa is the best of all, with the best rates. However, bureaucracy is a limiting factor of this remodeling financing.

The project to obtain the financing for the remodeling must have from exactly what is going to be made in the real estate to the budget of the materials and the service. The values of the remodeling financing are made available to the borrower of the financing according to the schedule of the work. That is, the money of financing for remodeling is not made available to the borrower at once. That is why it is very important that the schedule of the work delivered together with the documentation for the financing for remodeling is complete and concise.

When requesting a financing for remodeling, the bank will make an inspection in the real estate in order to determine the market value. Up to 70% of the property value can be financed for remodeling, and it becomes part of a guarantee of the payment.

In this manner, the terrain and the property must be registered on the name of the owner, and none of them can be used as a guarantee in any other type of financing.

Below, there are some conditions of the financing for remodeling:

• Interest rates for building financing vary from 10% to 16%
• Limit of financing for the remodeling of 70% of the value determined.
• Pre-fixed or post-fixed interest rates (+TR)
• It is necessary to have obligatory insurance to finance the remodeling
• It is necessary to pay the Credit Extension Rate for hiring the remodeling financing
• The maximum term for the remodeling is 12 months
• The maximum period for hiring the remodeling financing is 20 years

Remodeling Financing – Banks

• Bradesco Remodeling Financing
• Caixa Federal's Financing for Building and Remodeling
• Crédimóvel HSBC Remodeling Financing