Submitted by Jack Ulrich on Wed, 02/27/2019 - 14:16
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If a borrower is approved for a certain loan amount at the beginning of a project but the project cost increases due to unforeseeable circumstances, will the lender allow the borrower to increase the loan amount to cover the new costs?
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Generally, yes. The loan amount can increase to accommodate the new project costs if the borrower’s debt-to-income ratio still qualifies for the new loan amount. The new loan amount must not exceed the maximum ($50,000) allowed in the REEL program, and the project must still meet program eligibility requirements. Loan terms and conditions will vary from lender to lender. Refer to the specific lender profiles on the contractor resources page and contact lenders for more details.