Loan that can start paying in a year?

amother

Sun, Jul 25 2021, 12:49 am

I'm clueless. Is there such a thing as taking a 100k loan, let's say a home equity and starting to make payments only a year later?

I'm desperately looking to renovate my home in such a way that I can rent out a part of it. However I will have no way of paying it back until I get the rental income.

I currently have no mortgage on the home.

Anyone know if there's a way to make my renovation happen without needing to make loan payments right away?

amother

Crimson

Sun, Jul 25 2021, 12:57 am

Pretty sure home equity all you’d need to pay is the interest, if you get a long term (30 year) loan.

challahchallah

Sun, Jul 25 2021, 1:08 am

You can take out a slightly bigger loan than you need for the work, and use the extra for the first year’s payment. For instance, if you need $100k, take out $120k loan and use the extra $20k for the first year’s payments (and some buffer).

amother

Sun, Jul 25 2021, 1:13 am

amother [ Crimson ] wrote:

Pretty sure home equity all you’d need to pay is the interest, if you get a long term (30 year) loan.

I don't have the money to pay even only interest. I will have money to repay the loan ONLY once the renovation is completed and someone rents it.

amother

Crocus

Sun, Jul 25 2021, 1:14 am

amother [ OP ] wrote:

I don't have the money to pay even only interest. I will have money to repay the loan ONLY once the renovation completed and someone rents it.

Take out extra to cover the payments for a year and a half and keep thst money in a separate account.

amother

Sun, Jul 25 2021, 1:14 am

challahchallah wrote:

That's a good idea. But is this the only way? Or is there any type of loan that offers to start payments only a year later?

challahchallah

Sun, Jul 25 2021, 1:30 am

amother [ OP ] wrote:

That's a good idea. But is this the only way? Or is there any type of loan that offers to start payments only a year later?

I’ve never seen it, but maybe it’s out there somewhere.

Kelly43

Sun, Jul 25 2021, 6:06 pm

amother [ OP ] wrote:

Remember one thing money costs money.. you can't borrow money and do payments a year later.. maybe a credit card but it's not enough for renovation.

amother

Yolk

Sun, Jul 25 2021, 6:34 pm

If u can get hold of an sba loan. Those payments are starting a year after getting it

amother

Orange

Sun, Jul 25 2021, 6:40 pm

amother [ Yolk ] wrote:

If u can get hold of an sba loan. Those payments are starting a year after getting it

The eidl loan from the sba is exclusively for business use. It's fairly easy to get if you have an existing business with tax returns. I don't know if it's available for new businesses. It's worth checking into because yes, the payments don't start for about a year. But again, it's for business use only and the sba has busted people running scams/fraud.