Remodeling Loan in present market condition

Asked by , Mon Oct 6, 2008


We own a home in Walnut Creek and are planning to remodel it. It has been a year since we bought our place and would like to expand (add atleast 800 sqft) and renovate our 925 sqft single family home. We have a HELOC, but this is frozen by our bank (National City), the reasoning being drop in value! Keeping in mind that we don't have enough equity in our home, what options do we have for financing our remodeling in the current market conditions?
Has anybody gone through this process? Any pointers/ ideas will be appreciated.


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, ,
Sun Feb 22, 2009
I'm not quite clear what Wells is saying. It sounds like they were just talking about an equity line possibly. The 203k loan is designed to lend on future value of the improvements. Please give me a call when it's convenient for you so we can discuss it further.

c. 925-708-5400
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, ,
Sat Feb 21, 2009
Thanks Brian LeBars.

Is this based on the current equity in the house? Wells Fargo also offered a similar remodeling loan but when we wanted to pursue it further, we were informed that it is based on our current equity and the future value of the house (from improvements) - effectively saying we are not eligible in the current conditions. Can you give use some more details please.
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Marty S, , Irvine, CA
Wed Feb 11, 2009
There are several good suggestions here. I would sit down with a Mortgage Broker and discuss your options.

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
877-238-6324 FAX
0 votes
, ,
Tue Feb 10, 2009
I just saw this question and it may be too late to answer but a great solution would be a FHA 203k remodel loan.

I would be happy to discuss with you and I am local.

It is a loan that funds on future improvements to a property.

I hope to speak to you soon
0 votes
Brian G. Pat…, , Fremont, CA
Thu Oct 9, 2008
A lot of people are going to say that they can help; at the end of the day banks want equity and if there isn’t any equity then they will not touch your home. I have done financing for years and I know that if there were a lender who would lend you the money it would come at a cost that would make no financial sense. My suggestion is for anybody who has no equity in their home to hold and wait till their property starts making them money before they start investing in it. Otherwise they could try to modify their loan to possibly lower their mortgage. is a company who specializes in loan modifications.

Hope I was not too black and white.

Thank you!
Web Reference:
0 votes
Will, , Atlanta, GA
Thu Oct 9, 2008
I may be able to be of assistance. Our renovation loan is based on the after improved value of your home. The improvments should help increase the value of the home and allow us to finance. Give me call when you can.

Renovation Specialist
Wells Fargo Home Mortgage
0 votes
Elias Anguia…, Agent, Fairfield, CA
Mon Oct 6, 2008
You may try a rehab loan although they might also take a look at the equity of the home. There is not going to be an easy find if you are going to use the home as colateral. You might try a personal loan but I would not do it unless I am going to keep the home at least for the next 5 years or longer because of the time that might take the market to regain your investment... Be careful..
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