Can you get a loan to renovate,extend and improve yard using your home as equity only?

want to renovate, extend with new living area, build a garage and fix up yard and fence. Can I get a loan using my home as equity only? Neither of us work, partner has severe back injury, and we have 3 children. At completion I would like to work from home doing child care, I'm trained, but need these improvemnts to make house suitable to do this.

Can you get a loan to renovate,extend and improve yard using your home as equity only?
read this carefully:





Banks will look at your qualifications which are determined by your debt to income ratio ( which means how much you make and compare to how much debt you owe,although they have stated income programs, or no income programs) where you dont have to show or have income.


your loan to value, (which means how much equity will be in your house after the loan amount is determined, the lower percentage the better usually under 70%) and they will also look at your middle credit score and credit history. Oh and they will also look as if you have any kind of reserves i.e 401k IRA investments or a nicely padded savings account.





Dont go to a Retail Bank got to a Mortgage broker they have wholesale rate ( Mortgage Brokers get cheaper rates from Banks for the costumer, costumers get the retail rate if they go straight to the Bank) Some times it cost a little more to go straight to a broker but in the long run you will get the best rate long term and save more money vise getting a cheap higher rate that will end up costing you more in the life of the loan.


Another thing get your self a business license before you do this that might help in the loan process, plus it doesnt cost much and get a good CPA. As a home and business owner you have to start thinking write off write off writte off!!





Usually banks look at the benefit of the loan, if you are not already set in a long term fixed loan I would refinance and get cash out for the home improvements and get into a fixe rate. HELOCS Prime rates are at a 8.25 prime and it might be adjustible. if you refi you will have a lower interest rate. Youd have to talk to a loan officer or retail lender to look at your scenario. Plus you can Open a small HELOC to jump start your business. man I wish I knew who you were to walk you in the right direction before you get riped pff by some shark loan officers out there. what ever you do dont let anyone rush you it is a very important decision which will affect you in the years to come.there is a lot of different options for you and the best way to determine those options is by looking at your overall situation.





got to





pelicanlending.com





and see your options and use the mortgage tools, if you seek more help fill out an appication with contact information, or email pelican. my name is Chris, and I can at lease help you by explaining things to a T. no obligation no committement, just a free consultation. After all this is a very important life decision I cant stress that enough! and shop around dont go for the fisrt guy that promeses you the world, in this business if it sounds to good to be true it probably is.





good luck





Chris M diaz


Mortgage Consultant


US MARINE
Reply:Most banks offer HELOC lproducts - Home Equity Line Of Credit.





You need to have sufficient equity in your home to cover the LOC amount, for example if your home equity is $50,000, you can get a LOC of $50,000 and can withdraw the entire $50K for any purpose.





The interest on a HELOC is tax deductible, up to a loan amount of $100,000.








Why not just drop into your friendly neighborhood bank, and ask for details about the HELOC? Or google HELOC and see what comes up.
Reply:I see that erstwhile colleagues are seeking business when they should be giving advise.





You should go locate a mortgage broker in your telephone book. Tell him you want an home improvement loan. Also tell him you are interested in looking at a





#1 Getting a HELOC (Home Equity Line Of Credit)


#2 A 2nd Mortgage


#3 A refinance of my existing loan





I also want to be able to compare the three and see which benefits me the best over the long run.





Simply tell him about the garage, extending the living area and repair of the fence and landscaping.





You need not tell him you are planning to fix the property up and use it as a commercial place to take care of children. That will be our little secret.





Now there is a question of how you plan to repay this loan you are getting as you indicated that neither of you work. This could be a deal killer. But let's not lose faith yet.





What type of income do you presently have coming into the


house, and how do you take care of everyday expenses?





There are such loans that you can get where you do not have to prove income. These loans normally are a bit higher. Speak to your mortgage broker about this situation. He will make a few suggestions.





Don't get into a situation where you borrow the money on your home and really have no way of paying it back. You will eventuall lose your house and you and your three (3) children will be on the street.





Now back to the day care center you plan to have at your home. I suggest that before you go through all the trouble of getting this loan to prepare your property for this endeavor you check with the city and find out the necessary permits and license you will need to get before you start on this adventure. If everything is ok in that department then go full steam ahead. Still keep it a secret from the mortgage broker. He need not know the real reason behind this home improvement loan.





Once you and your mortgage broker has decided on the loan programs you are qualified for based on your credit scores and credit report, you are set to go select the one that will benefit you the best.





For your information after you get your loan. You should get a city permit anddefinately business cards. This will make it easy for you to get you or next loan, especially when you have to prove that you are self-employed the city permit will do it without fail. You will also want to get a CPA or professisonal bookkeeper, you will not believe how much this will be of an asset to you for securing loans for the self-employed, even if they only do your taxes at the end of the year.





I hope this has been of some use to you, good luck.





"FIGHT ON"
Reply:Generally speaking no, income verification is usually part of the process, the borrower needs to demonstrate the loan will be repaid.





There are some specialty loan programs that don't require documentation for income "no doc" loans, but usually they require a credit score above 700, and some other assets (cash, pensions, etc.)





Talk to a mortgage broker and not the banks for no income loans, brokers have more resources. Also, if one says no don't be discouraged and give up. There may be another broker or banker with a lending program to meet your needs and qualifications.








Hope this helps. Good luck.
Reply:There are loans for rehab which future value of the property is used instead of the current value. While you will have to be able to qualify for the monthly payments you may be able to base that income on expected income generated once the work is done. Contact herbert.moses@wellsfargo.com. If it can be done, he will know how to do it. Hope this helps.