Home Improvement Program

We partner with state and local housing agencies and nonprofit organizations to rehabilitate properties.

As a lender, this demonstrates Global Home Finance Inc.’s commitment to lending in lower income communities and to help meet their responsibilities under the Community Reinvestment Act (CRA). We are committed to increasing homeownership opportunities for families in the communities we do business in.

Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made.

When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. Global Home Finance Inc.’s Rehab and Renovation Program was designed to address and help resolve this situation.

The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance BOTH the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work.