I have fair credit and i need to make improvements on my home

Asked by Mr Tdtmiles, 76119 Sun Feb 5, 2012

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Rob Weber, Mortgage Broker Or Lender, Plainfield, IL
Thu Mar 29, 2012
Since we don't know if your credit is sufficient to get a loan at all, it's hard to guide you.

I just typed a book to another question similar to yours, feel free to read it, perhaps the answer you're seeking will be there.

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Don Groff, Agent, Austin, TX
Sun Feb 5, 2012
We would need more information to help you with your question. I will assume you would like to take out an equity loan to do the home improvements. Depending on your credit and the equity you have in your home that may be an option. I would sit down with a lender or broker to see what options you have. Equity loans are more risky to banks so they will be more picky when it comes to the borrowers credit. At least if you speak with a professional you can see where exactly your credit stands and what steps are necessary to improve it. Knowledge is power when it comes to credit. Learn all you can and start making good decisions and your credit will get better over time.

Best of luck to you.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
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Dallas Texas, Agent, Dallas, TN
Sun Feb 5, 2012
???? Credit and home improvements don't understand your question. You don't have to obtain credit make any improvements?

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
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Barbara Coker, Mortgage Broker Or Lender, San Antonio, TX
Sun Feb 5, 2012
As a loan officer, my first suggestion is a simple Home Improvement Loan. It would be in 2nd position to your first mortgage. The rate would be a little higher, but you wouldn't be stuck with the rules that attach with a Texas Home Equity Loan. There is a saying in the mortgage business: "Once a home equity loan, always a home equity loan." Whenever you wish to refinance that equity loan, you'll have to wait a year since the last one. And if you want to roll it in with your first mortgage to get a better rate, the whole thing will become an equity loan.

There might be good reasons to do an equity loan though. Perhaps you'd like to pay off other debts which carry a higher interest rate and whose interest isn't deductible.

There is also an excellent loan called HomeStyle. It would allow us to refinance your first mortgage (if the rate it higher than market) and add in your improvement plan. Heck, you might even need an FHA 203(k) renovation loan.

So my recommendation is to contact an NMLS licensed loan officer for guidance. If a home improvement loan, the HomeStyle, the 203(k) and the Equity loan aren't included in the options suggested, then you should talk with another one. They won't make much commission on a small improvement loan, but it they don't suggest it to you, they only have their own best interest in mind. . .not yours.

It's complicated, isn't it?

Good luck!
Barbara Coke
Licensed Mortgage Loan Officer
NMLS # 228545
Web Reference:  http://www.thecokerteam.com
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Brian Rayl, Agent, Dallas, TX
Sun Feb 5, 2012
Jim is correct. If you are looking to take out a loan to make these improvements, then you have a couple of options:

Home Equity Line of Credit: This is a loan that uses your home as collateral. You have to have a significant amount of equity in your home to do this usually.

Cash Out Refinancing: Depending on the equity you have in your home, the value of your home, and your current interest rates, this may be a good option as well. This will refinance your loan into another loan. You can "cash out" (get a check) and add that amount onto the principal of your loan as long as the current value of your home would be greater than your current mortgage balance plus the amount of cash you are looking for.

You need to speak with a lender about both of these. Usually the HELOCs are done by banks. If you are looking to do a refinancing, it may be better to go with a smaller, local lender for the best rates. If you need a referral to a lender, please don't hesitate to ask.

Brian Rayl
Keller Williams Elite Park Cities
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Jim Cramer, Agent, Waynesboro, PA
Sun Feb 5, 2012
The big questions and missing pieces of information here are the equity you might have in your home and the after repaired / improved value of your home. There are Loan products currently available that could help you with what you would like to do. You need to get together with a Lender and talk with them as to what you would like / need to do and they may be able to help you make it happen.
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