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Banc One Mortgage Corp., which has eight offices in Utah, is announcing a new mortgage plan that combines the purchase price or refinancing of a home and the cost of home renovations into one mortgage loan.

The company is the first in Utah to offer the new program, called Bank One Renovation Mortgage, that was developed with the cooperation of the Federal National Mortgage Association.Larry Hintze, vice president and manager of Banc One Mortgage, said the new program simplifies the home improvement process for Utahns buying or refinancing their homes.

Before introduction of the new program, Hintze said borrowers had to qualify for a separate home improvement or construction loan to make renovations or additions. "Now with only one closing, the new loan streamlines a previous multistep process," he said.

The renovation mortgage features a fixed rate of interest and a variety of term lengths. Renovation costs must be at least $5,000, but no more than 50 percent of the home's improved value. The maximum mortgage loan amount is $203,150.

"This partnership with Banc One Mortgage is part of the ongoing commitment to maintaining the value of older homes in both inner-city and rural communities, while keeping them affordable for families with low-to-moderate incomes," said Scott Schmitt, director of housing impact for Fannie Mae's 10-state midwestern regional office in Chicago.