So my wife and I have come to a great understanding of wanting to make improvements and upgrades and not move. Thank god because I hate moving! Just want to know the ins and outs of what folks have done and how they work? Thanks
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I do them. 90% Ltv of after repaired value. Example : house worth 150k and owe 100k adding 40k in improvements we may give you 50-100% of what it cost. So say 50%. Making value 170k
90% Ltv gets you 153k minus what you owe 100k loan amount up to 53k or what bids are. Amortized up to 30 years interest rate is about 7%
Compared to a home equity line of credit which is also an option but max 80% Ltv current value. In same scenario only getting you 20k. Interest rate is variable but currently near 4%
Hope I confused you enough
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I dont have any advice on the financial side, but i will add that it may be a good idea to find and vet your contractor ahead of time. You dont want to wait until you're "ready to start". He can help you plan for costs, areas to upgrade, areas to save money, etc. I would call at least four of his references as well. Imo, he should be willing to help with all of the planning stages so you will have something concrete to show the bank.
Good luck!
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Originally posted by wes122984 View PostI do them. 90% Ltv of after repaired value. Example : house worth 150k and owe 100k adding 40k in improvements we may give you 50-100% of what it cost. So say 50%. Making value 170k
90% Ltv gets you 153k minus what you owe 100k loan amount up to 53k or what bids are. Amortized up to 30 years interest rate is about 7%
Compared to a home equity line of credit which is also an option but max 80% Ltv current value. In same scenario only getting you 20k. Interest rate is variable but currently near 4%
Hope I confused you enough
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