topic Re: Need advice for a home improvement loan - any suggestions?? in Mortgage Loans

Need advice for a home improvement loan - any suggestions??

Anonymous — Sat, 17 Jan 2015 03:57:04 GMT

Hey All,

I'm hoping someone can give me advice on the best place and best product to apply for a home improvement loan.

My wife and I need to do around $40K worth of renovations and structural work on a 3-family home we bought

just over a year ago. Our joint income has decreased recently to about $70K. My credit score is around 720 (and relatively new)

but hers is in the toilet (around 590-600) and not going to improve anytime soon.

Becasue of appreciation, we probably have around $350K in equity. Mortgage is good, no liens and no lates.

I'm reluctant to go with the big banks because they seem to take forever to close on loans and was leading towards a credit union.

I am a NFCU member but they said they don't finance 3-family homes.

Any and all advice appreciated.

Cheers.

Re: Need advice for a home improvement loan - any suggestions??

StartingOver10 — Sat, 17 Jan 2015 04:13:32 GMT

Try a small community bank in your area. They are your best bet for HELOC's.

Re: Need advice for a home improvement loan - any suggestions??

Anonymous — Sun, 18 Jan 2015 18:07:00 GMT

Ok thanks. I'll check them out.

Re: Need advice for a home improvement loan - any suggestions??

cd47 — Sun, 18 Jan 2015 20:03:52 GMT

With that much equity in the home why not ask for a line of credit with the bank you have. You have established a good record with them and will increase the value in the property they are financing for you. Just a thought!

Re: Need advice for a home improvement loan - any suggestions??

Anonymous — Mon, 19 Jan 2015 13:33:12 GMT

Another option is to look into why your wife's score is so low. While this is more appropriate for the "rebuilding credit" forum, it really shows the interconnectivity of everything.

I'm guessing that your DW has a few derogatory marks in her history. Many of these are relatively easy to get removed. You can try sending goodwill letters, or Paying For Delete with open collections. Anything short of bankruptsy is generally removable without a ton of effort. Ask around, you might find a nicer rate pops up as a result.

Re: Need advice for a home improvement loan - any suggestions??

Anonymous — Tue, 20 Jan 2015 22:14:15 GMT

Hey Petrovius,

Thanks for the response. Re. my wife's credit, there's no mystery. She's just maxed out on multiple lines and won't be in

a position to pay them down until about 3-6 months from now.

Cheers, H.

Re: Need advice for a home improvement loan - any suggestions??

Anonymous — Tue, 20 Jan 2015 22:14:49 GMT

I never considered that. Thanks for the info.