Posted on: 05th Nov, 2009 08:10 am
i want to borrow $40,000 but only have about $20,000 in equity. what should i do?...i owe $191,000 and my house is worth about $211,000.
You are over 90% loan to value, you just don't have any equity to tap into. Most lenders will only allow 80%loan to value on conventional and 85% on FHA. Your home is just not an option unless you appraise for more.
you can take personal loan for balance amount.
any suggestions about any other programs i could look into?a construction loan perhaps? anything
what do you mean by personal loan for balance amount and how will that help me?
hi russ!
welcome to forums!
if you have $20,000 equity in the property, then you can cash in that amount through a refinance or a home equity line of credit. for the rest of the amount, you can go for a personal loan. however, a personal loan is available at a higher interest rate. so, if you cannot afford a higher interest rate, then you should not go for it.
feel free to ask if you've further queries.
sussane
welcome to forums!
if you have $20,000 equity in the property, then you can cash in that amount through a refinance or a home equity line of credit. for the rest of the amount, you can go for a personal loan. however, a personal loan is available at a higher interest rate. so, if you cannot afford a higher interest rate, then you should not go for it.
feel free to ask if you've further queries.
sussane
Thanks Smith for clarification.
Ross, id not think that you have any other option will you tell us more about your financial condition & need so that we can tell you some more options?
Ross, id not think that you have any other option will you tell us more about your financial condition & need so that we can tell you some more options?