Do you love your home but need some major repairs? Do you want to update a certain room in your home? Do you want to put an addition on your home to give you and your family a little more room? Is your dream home a fixer upper?
These are just a few of the many of the reasons why you might be interested in a home improvement renovation or rehab loan. There are a few options out there. What works best for you will be based on a few factors such as current rates, amount of money needed and the equity you currently have in your home. Listed below are the most common home improvement loans available in NH.
Cash-out Refinance – With a cash-out refinance, you can obtain a new mortgage loan replacing the one you currently have. You would need to have equity in your home so that you are able to get cash out. This also is a good option when interest rates are low.
Home Equity Loan or Line of Credit – These options are both second mortgages on your home. This is a good option if you have equity in your home and interest rates are higher than your current mortgage.
Home Improvement Loans, 203k Rehab Loans & Renovation Loans – Although called by various names, all of these loans basically work the same way. These are new loans that provide you with the funds you need to make predetermined improvements on a predetermined disbursement schedule. This is similar to how a construction loan works to build a new home. This type of financing can be used to either pay off your existing mortgage or be added on top of what you owe on your current mortgage. They work best when there isn’t a lot of equity in the home and the “after improved value” is needed to determine the max loan amount. We see this most often on expensive improvement projects when you may be hiring a general contractor
Please call me at (603) 471-9300 or email me to discuss which financing option works best for your home renovations or rehab.