How to finance renovations for a SFH I already own...

6 Replies

Originally posted by @Teairha Washington :

Property is in Baltimore, MD.

HELOC or Cash...if neither of these work than a business Line of Credit...if that doesn't work than a personal line of credit (assuming risk tolerance and adequate credit score)

@Teairha Washington it is important to say whether this is an investment property or you own home you live in. That will change your options. Also Is it in your own name or title in the name of an entity like and LLC or Inc.

On top of what @Ned Carey said, it's also important to let us know if it's free and clear, and if not, how much leverage you already have on it (current loan balance vs. current market value).  These answers will determine whether you can get a conventional loan, commercial loan, hard money loan, etc.

Thank you @Ned Carey . I live in the property now but I hope to move out soon. It's in my name. I purchased it 12 years ago but I used a regular FHA loan to get it and I still make regular monthly payments on it. I still owe about 74K on it. 




Originally posted by @Ned Carey:

@Teairha Washington it is important to say whether this is an investment property or you own home you live in. That will change your options. Also Is it in your own name or title in the name of an entity like and LLC or Inc.

@Teairha Washington the fact it is in your own name will make it easier to get financing. It is also easier to get financing to refinance or to get a Home Equity Line of Credit (HELOC) if it is your primary residence. So it is in your best interest to try to get financing before you move out.