5 responses to “How to finance home improvements without equity loans? I want payments based on loan terms GREATER THAN 15yrs?”

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  SmartA$$ February 21st, 2009 at 17:25

  CRAIG

  You’re right, that is a catch 22. Perhaps you could take the 5-7 year personal loans for the home improvements. Then after the repairs/upgrades are completed, get a new appraisal to show that you have equity, then get a 2nd mortgage, a HELOC, or refinance altogether to pay off the shorter term personal loans.

  The other thing you could do, although its a bit risky, is to play the “introductory rate game” on credit cards. Get a card with a very low introductory rate. Use it to do the repairs. Then before the introductory rate expires, call your bank and threaten to transfer the balance if they don’t extend the low rate. If they don’t extend it, transfer the balance to a different card with a low introductory rate. You can usually pull this off for a while if you have good credit, but sooner or later you have to pay off the debt. Its a big risk because if you aren’t able to get low interest fiancing against the equity in the house, you will eventually run out of low introductory rate credit card offers and you’ll be stuck paying high interest on this balance while it sits on a credit card.

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  golferwhoworks February 22nd, 2009 at 23:45

  LEVI

  Fact-Think about the improvements you want to make. Are you adding sq ft. if not then you will no see a lot of appreciation in your improvements. Things like replacement windows are nice but the house has windows now so not a huge benefit is it. If adding additional feet then get the money from some place else and do your improvements then get the home refinance into one loan is your best option as if these cost 30k and your improvements give you say 60 in value it should work. BUT before you do this call your realtor back and see just how much the new footage of the home will bring up the value. In other words do your homework

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  40something February 24th, 2009 at 15:22

  REINALDO

  In this market, the bank is going to want to see 20% equity or more before they would consider lending you any more against your home. Do you have that? If you’re paying PMI you should probably pay for these improvements without using your home as collateral so you can hopefully remove the mortgage insurance.

  Don’t use what you qualify as a guide to what you can afford. I think recent history has show us that lenders don’t have a good idea of what people can really afford.

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  kemperk February 27th, 2009 at 12:36

  NUMBERS

  as my peers said, be careful about making improvements just
  to make them.

  if you find some improvements essential, use the
  Oriental method; save your cash. Pay for the improvements
  with cash.

  OR, TRADE service for service on the improvements;
  [risky too]

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  Judy March 1st, 2009 at 04:43

  DARREN

  How much you prequalified for is irrelevant. The house itself has to be worth what lenders will loan on it.