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JessRay
LIF Zygote
Member since 10/14 8 total posts
Name:
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Complete Home Renovation/financing
Hopefully someone has personal experience or advice to give on the following: Purchased a home 4 years ago relatively low in price because of the market at the time. We now plan on expanding/dormering the second floor to make the bedrooms larger and expanding into the attic to accomodate a 4th master bedroom. The kitchen and both bathrooms need to be gutted and the basement needs to be finished. Electriccal needs to be updated and I'm hoping to add a portico or porch. Now the question is- does anyone know of any contractors out there offering financing in excess of $150k for this type of remodeling? Is it smart to take type of loan and pay it off by refinancing the home once the project is complete? I NEED HELP.. moving is not an option as we can't find a house that we like in our neighborhood which will accomodate all the wants and needs of our growing family.
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Posted 10/8/14 1:46 PM  |
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MommaG
Yay Spring!
Member since 5/05 5133 total posts
Name:
Gloria
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Complete Home Renovation/financing
When we did a huge project like that, we refinanced so we only had one mortgage and no other loans. I don't know of any contractors that would give you the loan, only a HELOC or home equity loan.
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| Posted 10/8/14 2:59 PM |
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JessRay
LIF Zygote
Member since 10/14 8 total posts
Name:
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Complete Home Renovation/financing
MommaG- did you refinance prior to the reno or was it a 203k? See we wont have enough equity in the house at this point to do something like that..
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| Posted 10/8/14 3:19 PM |
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MrsRapz
mahna mahna!
Member since 2/12 1952 total posts
Name:
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Complete Home Renovation/financing
When we were looking into dormering, we were told that we could do a refinance based on the estimated value of the home after renovations.
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| Posted 10/8/14 3:25 PM |
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MommaG
Yay Spring!
Member since 5/05 5133 total posts
Name:
Gloria
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Complete Home Renovation/financing
We refinanced before and used the money to pay the contractor.
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| Posted 10/8/14 6:40 PM |
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TheLucille2
Yayicanpickmyowntitle!
Member since 6/11 1058 total posts
Name:
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Re: Complete Home Renovation/financing
We took out a significant home equity loan (though not 150K) for our renovations.
Are you a member or eligible to join any credit union? I secured a low interest rate at less than 3 percent for 5 years. Given how much we borrowed our payment isn't too bad.
FM for credit union info.
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| Posted 10/9/14 10:23 AM |
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b2b777
LIF Adult
Member since 9/09 4474 total posts
Name:
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Re: Complete Home Renovation/financing
Posted by MrsRapz
When we were looking into dormering, we were told that we could do a refinance based on the estimated value of the home after renovations.
This sounds like a 203k situation. Wonder if that is the case or not.
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| Posted 10/9/14 2:19 PM |
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JessRay
LIF Zygote
Member since 10/14 8 total posts
Name:
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Complete Home Renovation/financing
I agree MrsRapz..
We actually went thru the whole 203k application last year, we even signed an agreement with the contractor but in the end we decided that it was going to cost us more going that route than refinancing after the work is done. Also when doing the 203k you pay PMI or MIP (cant remember which way it is) for the life of the loan. This was a new rule enacted last year. Can you imagine paying PMI for 30 years!! Incredible.. and refinancing into a new loan in a few years to get out of that PMI is also a waste of money when you calculate closing costs.
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| Posted 10/10/14 10:08 AM |
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b2b777
LIF Adult
Member since 9/09 4474 total posts
Name:
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Re: Complete Home Renovation/financing
Posted by JessRay
I agree MrsRapz..
We actually went thru the whole 203k application last year, we even signed an agreement with the contractor but in the end we decided that it was going to cost us more going that route than refinancing after the work is done. Also when doing the 203k you pay PMI or MIP (cant remember which way it is) for the life of the loan. This was a new rule enacted last year. Can you imagine paying PMI for 30 years!! Incredible.. and refinancing into a new loan in a few years to get out of that PMI is also a waste of money when you calculate closing costs.
So were you able to take out a regular loan based on the value the home WOULD have after reno's?
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| Posted 10/14/14 9:45 AM |
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MrsRapz
mahna mahna!
Member since 2/12 1952 total posts
Name:
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Re: Complete Home Renovation/financing
Posted by b2b777
So were you able to take out a regular loan based on the value the home WOULD have after reno's?
We didn't dormer in the end ... we're going to be expanding the first floor of the house instead. It came out to about a third the cost that the dormer would've been.
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| Posted 10/14/14 11:09 AM |
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