Construction Loan (or other) for remodel?

Arthur68
Contributions:15

Here's our situation:

Ready to renovate, have the contractor, plans, permits soon and $130k of our own money toward what will be about a $260k renovation. Just my wife and I, both have very good/great credit, high income, house is the quintessential "worst house in good neighborhood". We're at about 17.5% equity (just bought the house 2 years ago and decided to keep some $ for renovation instead of putting 20% down)

We've looked into a construction loan to perm with a couple banks, closing costs seem very high (around 18k altogether +/-), one requires a point paid. I'd like to re-mortgage with at least a 25 year loan at the end, if not a 20 (if we can swing it)

What other options do we have here? Is this it? 203k is a no-go MI is insane.

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February 06 - New York

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Cheryl Talbot Real Estate, "Virginia Beach Homes"
- 4.2/5.0
- (5 reviews)
Contributions:674

Maybe you could try Google to see what other products might be out there. Gee, it would seem there would have to be some other products that other lenders would offer. If you went to a few banks and no one really had anything that was affordable then where does anyone go for affordable loans? Try the major lenders online and see if you can dig for anything there. Also, you probably have asked this question but see if there's another way of borrowing or using the resources out there. I would just keep digging, there's got to be more available. Home owners are staying put if they can and fixing their homes up. They are getting the money somehow.