Profile picture for beachmagick

How can I get a loan to renovate my home if I don't have enough equity yet?

My husband and I bought a home that needs work about a year and a half ago. We have been working on it with what money we can pull from our monthly budget. However, we are reaching a point where the renovations needed are bigger ticket items... counters, flooring, replacing tubs & showers, add a deck, etc. Because it's only been a year and a half, the banks aren't willing to even take into account the renovations already made to the home to give us credit for any sweat equity we have in order to continue. No home equity line. Is there anywhere else we can turn? We have excellent credit rating and room in the budget to pay back a loan but not a pile of cash lying around.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 29 2011 - Yellow Springs
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (6)

Do they still carry the 80 - 20 financing ?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 02 2012

The FHA 203(k) Loan will allow you to refinance your current mortgage and include in your new loan amount the cost of those repairs, up to $35,000.

The Appraisal on your home would be based on the 'as improved' value of the home, so this could make up the difference between what you need for Equity and what you have.

You can google the FHA 203(k) loan program to get more information, but this would be one of the better options at your disposal.

Best of luck to you and happy holidays!

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 22 2011
You may want to consider a construction or repair loans with a subject to appraisal.  It starts by getting a list together of all of the repairs you would like to complete.  Get bids from your local contractors. Once you have bids you can get a "subject to appraisal"  This is an appraisal that takes into consideration the value the repairs would add to your home. (subject to repairs/ improvements) 
We have done this many times and it has worked very well for us.  You do however have to come out of pocket for the first bit of your repairs, but as the job progresses the bank will give you draws on the construction loan. This reimburses you for the money you put out  of pocket. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 15 2011
Did you end up going with a FHA 203k loan?  You should be able to get about $30,000.  Rates are currently in the mid 4% range  I though that would work the best.

Paul
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 23 2011
The most popular loan right now is the FHA loan based on future value of you home after the home improvemements. The maximum amount of loan is $429,000.
Call Steve Mass @ 310-849-4764 and he will explain more to you about this loan.

Go to:
https://entp.hud.gov/idapp/html/hicostlook.cfm. .
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 10 2011
HI There,
You might try contacting a mortgage company and see about getting a current appraisal.  Most of the markets have not gone up in the last few years, but your area could be different. It will also depend on what you put down when you purchased the house.  Try contacting your lender who did your loan if you don't get a good response, try a different lender. 
If we can help you with more information, give a call or email anytime.
Lisa Doyle
[phone and hotlink removed by Zillow moderator]
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 29 2011
 
Related Questions
How can I get a loan to renovate my home if I don't have enough equity yet?
Profile picture for Martins Construction
Latest answer by Martins Construction
January 02 2012 | 6 answers
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 127 N Walnut St, Yellow Springs, OH Home For Sale
    127 N Walnut St, Yellow Springs, OH 45387

     For Sale: $135,000

    • Beds: 3
    • Sqft: 1120
    • Baths: 1.0
    • Lot: 6665
  2. 418 N Stafford St, Yellow Springs, OH Home For Sale
    418 N Stafford St, Yellow Springs, OH 45387

     For Sale: $169,900

    • Beds: 3
    • Sqft: 1641
    • Baths: 2.0
    • Lot: 8000
  3. 611 Yellow Springs Fairfie Rd, Yellow Springs, OH Home For Sale
    611 Yellow Springs Fairfie Rd, Yellow Springs, OH 45387

     For Sale: $199,900

    • Beds: 3
    • Sqft: 2224
    • Baths: 2.5
    • Lot: 8145