How did you fund your renovation?

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amother

Thu, May 02 2019, 7:45 pm

For those who did extensive renovations on their homes....
What method of funding/loans did you use? We are finding the construction loans to be ridiculously costly, we are just not sure if that is our only option. Anyone get some form of personal loan?
(Obviously if you used all of your own money, this question does not apply to you :-)

amother

Wheat

Thu, May 02 2019, 7:55 pm

amother [ OP ] wrote:

What about a hone equity line of credit?

amother

Thu, May 02 2019, 8:04 pm

We just bought the home so I'm not sure we qualify for home equity line of credit...

amother

Scarlet

Thu, May 02 2019, 8:14 pm

I’d also love to hear, so bumping this! Our property value went up and we can technically refinance to fund, I think... curious to hear all of the options, though!

amother

Mint

Thu, May 02 2019, 8:16 pm

Construction loans are meant to be for a year then it automatically rolls into a regular mortgage. That's one type of construction loan. If your buying the house now, you can put down very little downpayment and use the rest for renovations.

amother

Babypink

Thu, May 02 2019, 8:22 pm

Credit card.
It wasn't a huge sum of money (12k). We opened a card with 0% interest for the first 18 months. Made minimum payments all that time. After that, we transferred the balance to a new card with 0% transfer balance fee and interest free for 12 months. Kept up the minimum payments. We could have kept up this game for longer because BH we have great credit, but for the last bit, we preferred to borrow from a relative with the plan to pay them back after we receive our next tax return.

amother

Coffee

Thu, May 02 2019, 8:36 pm

Home equity line of credit. I got one a few months after I bought my house.

thunderstorm

Thu, May 02 2019, 8:39 pm

The people that I know who did big renovations paid with savings or took out a home equity line of credit . Most took out the home equity line of credit.

amother

Rose

Thu, May 02 2019, 8:40 pm

amother [ Scarlet ] wrote:

I’d also love to hear, so bumping this! Our property value went up and we can technically refinance to fund, I think... curious to hear all of the options, though!

We bought our home a decade ago for around 500k. It was now valued by the bank at 1 million. We just refinanced to tap into the additional equity. We are using the almost half a million in capital to do a major renovation, including a substantial extension.

amother

Turquoise

Thu, May 02 2019, 8:43 pm

If you own a car you can refinance it and pay back monthly.

amother

Turquoise

Thu, May 02 2019, 8:44 pm

amother [ Turquoise ] wrote:

If you own a car you can refinance it and pay back monthly.

We did this through pen fed credit union.

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