Grove City, OH · Member since 2017 · 1 post · 0 votes
We are looking to build a guest house on our property. It is our residence and the guest house would be at the rear of the property and we would like to rent it out or eventually move a parent in if needed. So far I'm being told the only thing available is a home equity loan at a 20 year term. Does onyone have any other ideas? Ideally we'd like to do a 30 year loan to keep the payment down and increase cash flow.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
2y
@James Bapst who told you that only a Home Equity Loan is possible? Was it a lender that reviewed your financial and numbers? If so, they kind of have a leg up on us since they already saw everything and this is what they suggested.
Now, depending on the cost of the guest house and your income a personal loan might be possible. That would be more of a 5 year term...and at a higher interest rate. Usually, if we are securing real estate to a loan those have lower rates and better terms than most other loan products. You can ask the builder if they have financing available. You can also ask some other investors in your area if there are any good lenders that are local to your area that might have some options. Mom is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you.