I want to increase the value of my primary home by doing some much-needed repairs. My wife and I want to sell this home, then downsize or owner-occupy a multi-family, and have additional cash for investing. We currently owe $148,000 and the current market value is approx. $207,000.
The question I have is about Home Improvement Loans. Are they better or worse than Home Equity Loans? What about the requirements for each?
Most home improvement loans require the borrower to fully describe the nature and scope of the work to be performed. In many cases, homeowners lack sufficient equity to justify a loan, which legally would be a second mortgage, since the lien is recorded after the first mortgage loan. However, if all proceeds are to be used for home improvement.
Home Improvement Loans are home loans used to finance improvements on your house or property. These loans are used to maintain or increase the value of your home. This can include repairs, a new kitchen, a new bathroom, an extension or general property improvements. Landscape improvements and swimming pools can also in many cases be considered home improvement.