What are similar houses going for in your area? Have they increased in value? What affect would the modification have on the house's resale value?
If you talk to a realtor in your area, they may be able to provide you some broad numbers that you could use.
There are financeers that will allow you to get home equity loans for up to 120% of the home's value. Also, you could try refinancing the home for the value after the remodel is done (just going for one large loan, rather than a second mortgage)...
Vickles. Go get a bid from a contractor and then go hunting for a new mortgage that totals what you oue plus the construction cost. This will vary by state but most mortgages allow for an addition with the bae house cost.
He does excellent work. And as far as financing, Mark has a good idea:
quote:
There are financeers that will allow you to get home equity loans for up to 120% of the home's value. Also, you could try refinancing the home for the value after the remodel is done (just going for one large loan, rather than a second mortgage)...
Would it be called a home improvement loan or is it a construction loan?
It's not a construction loan. My understanding is that a construction loan is a short-term loan used to finance the construction of a new building. After the building is complete, the loan is due. The 'owner' then takes out a conventional long-term mortgage and uses that to pay off the construction loan.
Well now I have a chance to buy a hobby farm instead and sell my house.
Another question for all of you with the know how....
If I decide to get this hobby farm is it better to get a business loan or a home loan?
If I do decide to buy it I'm going to have a boarding kennel. Its really big around here and hard to find a place for the animals.
I'm thinking a business loan might give me more money for starting costs. But I have to write up a business plan for it and have no idea how to do it......
If I decide to get this hobby farm is it better to get a business loan or a home loan?
The best loan is the one where you can get the most money for the least interest over the longest amount of time. Doesn't matter what they call it.
Usually that means the one with the most collateral. Banks don't lend money on the potential of your business. They lend money based on protecting their down side. They ask "What can we sell and for how much it if all goes south to get our money back." The surer they are, the less interest they charge.
You can "google" how to write a business plan and learn enough. Or you can "library" it. DON'T hire someone to write it for you. Even if you get the loan, you'll miss out on all the learning and you'll run out of money faster and still owe the bank a bunch.
And if you can start the business without a loan - or have income on the side to pay it off - the business will have a better shot at succeeding. Businesses almost never turn out the way you think (ask HAPe4me :D-->) so the more flexible your funding is the better. And the less money you have the more creative you get in figuring how to make 4 pennies spend like a nickle.
If you're really going to be in business, have you worked at the kind of business you're going to run? Have you made friends with others in that business so you can pick their brains? If not do so.
.... or have income on the side to pay it off - the business will have a better shot at succeeding. Businesses almost never turn out the way you think (ask HAPe4me :D-->)
HA! My3cents- good that SOMEONE had money on the side to pay it off. teehee. :P--> Vickles, just don't go into business with people who are going back into residence with the corp. I think you have escaped THAT problematic situation anyway.
hey, failin g a business isn't so bad. Henry had tried several ventures before success with the automobile.
Hap, I've been burned once before with business so I think that is why its much more scarier and because its where we are going to live so if the business bombs so is our house. I'm still looking into it.
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vickles
Would it be called a home improvement loan or is it a construction loan?
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markomalley
What are similar houses going for in your area? Have they increased in value? What affect would the modification have on the house's resale value?
If you talk to a realtor in your area, they may be able to provide you some broad numbers that you could use.
There are financeers that will allow you to get home equity loans for up to 120% of the home's value. Also, you could try refinancing the home for the value after the remodel is done (just going for one large loan, rather than a second mortgage)...
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ex70sHouston
Vickles. Go get a bid from a contractor and then go hunting for a new mortgage that totals what you oue plus the construction cost. This will vary by state but most mortgages allow for an addition with the bae house cost.
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dmiller
Vickles -- hire Geo.
:)-->
He does excellent work. And as far as financing, Mark has a good idea:
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Jim
It's not a construction loan. My understanding is that a construction loan is a short-term loan used to finance the construction of a new building. After the building is complete, the loan is due. The 'owner' then takes out a conventional long-term mortgage and uses that to pay off the construction loan.
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vickles
Thanks for the advice all....All of it is good advice and I will look into it, for sure. I knew I could get some good info.
David, I would love to have geo do our house but I don't think he is too interested in coming back to MN...
:(-->
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vickles
Well now I have a chance to buy a hobby farm instead and sell my house.
Another question for all of you with the know how....
If I decide to get this hobby farm is it better to get a business loan or a home loan?
If I do decide to buy it I'm going to have a boarding kennel. Its really big around here and hard to find a place for the animals.
I'm thinking a business loan might give me more money for starting costs. But I have to write up a business plan for it and have no idea how to do it......
Any ideas?
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suz
Oh contrair Vic,
Geo would LOVE to come back to MN,
home of his birth,
tell him to bring his tools AND his fishing pole, he will be there in a NY minute!!!
(after Japan that is)
love ya girl,
suz
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My3Cents
The best loan is the one where you can get the most money for the least interest over the longest amount of time. Doesn't matter what they call it.
Usually that means the one with the most collateral. Banks don't lend money on the potential of your business. They lend money based on protecting their down side. They ask "What can we sell and for how much it if all goes south to get our money back." The surer they are, the less interest they charge.
You can "google" how to write a business plan and learn enough. Or you can "library" it. DON'T hire someone to write it for you. Even if you get the loan, you'll miss out on all the learning and you'll run out of money faster and still owe the bank a bunch.
And if you can start the business without a loan - or have income on the side to pay it off - the business will have a better shot at succeeding. Businesses almost never turn out the way you think (ask HAPe4me
:D-->) so the more flexible your funding is the better. And the less money you have the more creative you get in figuring how to make 4 pennies spend like a nickle.
If you're really going to be in business, have you worked at the kind of business you're going to run? Have you made friends with others in that business so you can pick their brains? If not do so.
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HAPe4me
HA! My3cents- good that SOMEONE had money on the side to pay it off. teehee.
:P--> Vickles, just don't go into business with people who are going back into residence with the corp. I think you have escaped THAT problematic situation anyway.
hey, failin g a business isn't so bad. Henry had tried several ventures before success with the automobile.
~HAP
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vickles
Thanks, great advice.
Hap, I've been burned once before with business so I think that is why its much more scarier and because its where we are going to live so if the business bombs so is our house. I'm still looking into it.
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