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Please help with Home Improvement loan question?!?

am going to make an offer on a HUD home in a nice neighboorhood. The house is currently worth 140,000 but they are asking 98,000. The house was built in the 1970’s and hasn’t had much updating since. How long after closing on the home can I get a home improvement loan? What type of loan do you suggest that would be cheepest up front? I kid of need the loan shortly after closing on the house, because the flooring and some other things in need of replacing. Thanks!
Most of the we want to do to the house is cosmetic. But, the flooring is kind of gross through most of the house and I dont have the money to replace the flooring, so I’d need a loan. Also the baseboard heaters need replacing.
Most of the…^^WORK^^…we want to do — is what i ment :) sorry


  1. Jim says:

    I assume you’re not putting much as a down payment. If that is the case, you will probably have to wait at least 6 months before a mortgage underwriter will consider the appraised value as the true value of your home. If it is less than 6 months they will typically consider the value, the purchase price.

    That being said, depending on what type of specific home improvements you may need, some banks may be able to do a construction loan. In this scenario they would order an appraisal, and the appraisal would be assuming the work that you plan on doing is completed. Based on blue prints and cost estimates. So if the work that you plan on doing will add significant value to the home, the bank might be able to lend you up to 90% of the appraised value minus what you already owe on the home. Are you finishing a basement? Or is it just cosmetic stuff? If it’s just cosmetic, a construction loan probably won’t be an option for you.

  2. Clemmy J says:

    What the house is worth doesn’t mean what the house is worth. Drop the offering price of the housethey want (they will work with you to sell the house) and get a higher mortgage so you can make the repairs (add it inot the cost). Check the area listings on what the hosues are going for in the area. Make it work for you. You can do it 😉

    Some places will not give you a loan for home inprovements unless you resided there for say 1 to 3 years and depending on your debit ratio’s too.

  3. linkus86 says:

    If your income and credit is in good shape you don’t need to wait at all. If in fact the appraisal will come out to be several thousand dollars above the purchase price, I recommend you get a HELOC (home equity line of credit) so that you can determine the exact loan amount necessary as you improve the property, rather than a mere estimation.

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