We are renovating and want to know how much has to be comple

dgilbert · Joined: 18 Feb 2008 Posts: 1 1.30 Dollars($)

bathroom not quite done, garage not complete, molding not on walls and windows, windows not in room above garage,

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Dgilbert,

Welcome to the forum.

There are certain requirements to refinance the mortgage when you are renovating the house. You may need to submit complete plans of your renovation. These will actually show lender that the improvement of the house will also increase the value of the property.

Thanks,
Larry

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.03 Dollars($)

HI dgilbert,

You will have two options. The first would be the most preferable. The first option would be to see if you can get approved with just a drive by appraisal. If you have good credit, this should not be a problem. The second option would be that the lender would set aside money for the work to be completed out of the loan. This entails a bit more work and you have to use contractors.

charlesarmbruster · Posted: Thu Feb 28, 2008 11:21 am Post subject:

Certainly, you could pay for the work on credit and finish the house. Then, you can refinance the finished home to a higher value (possibly) to pay the original mortgage and the credit bills.

If you have no available credit, a home-equity loan may only require a computer generated value of your home and not an appraisal. This will result in higher monthly house payments, though.

Ask your current lender -- or ask a broker for an opinion. Either way, you've got to finish that house!!!! GOOD LUCK!!!

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