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Frequently Asked Questions

What is a renovation loan?
A renovation loan is a loan used to finance the improvement, repair, or upgrade of an existing property. It covers costs associated with renovating and refurbishing the property.
Who is eligible for a renovation loan?
Eligibility typically includes property owners with a stable income, good credit history, and sufficient equity in the property being renovated. Specific eligibility criteria can vary by lender.
Can I apply for both a construction loan and a renovation loan at the same time?
Yes, you can apply for both types of loans simultaneously if you have separate projects that require funding. Each application will be assessed independently based on its own merits and requirements.
How long does it take to get approval for a renovation loan?

Approval times can vary, but it typically takes about 1 to 4 weeks, depending on the completeness of the application and the lender’s processing time.

What documents are required to apply for a renovation loan?
Required documents usually include proof of identity, proof of income, renovation plans, cost estimates, and proof of property ownership.
Can I refinance my renovation loan?
No, you cannot refinance your renovation loan.
How is the loan amount determined for a renovation loan?

The loan amount is typically determined based on the estimated cost of the renovation project, the value of the property, and the borrower’s financial profile, including their income and creditworthiness.

What are the processing fees for renovation loans?
Processing fees generally include MMCB fees 12,000 MMK per pax, lawyer fees 40,000 MMK, and valuation report charges 40,000 MMK
Do I need to hire a licensed contractor to qualify for a renovation loan?
Yes, hiring a licensed contractor is usually a requirement to ensure that the renovation project meets quality and safety standards.
What is the maximum loan amount available for renovation loans?
The maximum loan amount depends on the lender’s policies, the borrower’s financial profile, and the value of the renovation project. It is best to consult with your lender for specific limits.