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Renovation lenders are seeing another great opportunity fly by as homeowners rush to refinance without knowing they could get a new loan that includes home improvement funding at the same great rate.
"What surprises me is that we haven't done a greater number of renovation loans with refinances," said Jane King, director of renovation lending for Irwin Mortgage Corp.
People are pulling cash out of their homes for renovations when they could easily finance the improvements through a Fannie Mae HomeStyle Renovation loan or a Federal Housing Administration 203(k) loan, she said.
"I think that has more to do with loan officers than it does with the borrower's desire to pull money to do renovations," she said.
In a refinancing boom, lenders just want to close one deal and move on to the next,…
Source: HighBeam Research, Renovation Lenders See HIL Opportunity in Refis.