How do you finance an addition to your home?

Real Estate Investing Construction Finance
1

I want to add a guest room to the side of my home, which is very expensive. What options do I have for financing?

5

Depending on your credit score. There are so many options for financing - you have to chose which one is best for you. Start with your local bank or credit union. If their terms are not acceptable to you, then you can go with a finance company that specializes in home remodeling loans, Some General Contractors offer in house financing.

2

Hi Janice, there are several ways to do that.
Most people use a combination of them. I just pointed out a few.

  1. Credit card financing options.
  2. Home Depot or similar retail can also open a line of credit for clients as long as you buy materials to them.
  3. Ygrene. If your improvements have roofing, A/C, windows, insulation and other similar energy conservation jobs, we can help you using a financing option where we are qualified to. You can finance up to 20 years and pay with your annual taxes in most of cities at Florida. There are banks specialized on loans for construction, specially if you have a property as a warranty for that.
  4. Regular second line of mortgage is other that we see often, since interest rate can be better than other sources. This is only the most common ways to finance a remodeling or addition, I hope this give you a first approach to answer your questions.
3

Janice, hi.

Depending on which state you live in, there are many options for financing. I would start with a finance loan from your local bank. If their terms are not acceptable to you, then you can go with a finance company that specializes in home remodeling.

Not sure if you can contact us directly, but if you do, we’ll give you the name of a company that will finance you.

Good luck!

Ariel Miller
URBAN REMODELERS LLC

4

Hi Janice,
There are few ways to go about it but ultimately you’ll want to use your equity for best terms, in the form of refinance, second, or line of credit. However sometimes the equity is not there until you you the addition, so what some people do is some kind of a bridge loan, like credit cards, personal loan, hard money etc. until you finish the addition and then refi with the new value of the house in place.
Hope that helps…Good luck.