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Is there a way to include home improvements in a conventional refinance?

I have 80% equity accumulated in my house and I'm trying to start a large remodeling project, which I would like to include in the loan without going over 80% LTV to avoid mortgage insurance. Can it be done? by AVentu_874_440 from Marietta, Georgia. Oct 3rd 2012 Reply


Travis Torcoletti (travis.torcoletti)
#0 ranked lender in South Carolina - 372 contributions

No because if you are currently already at 80% ltv anything you add into the loan for improvements is going to put you over that and thus create PMI. You could take out a line of credit against your equity for improvements and then avoid PMI.

Oct 3rd 2012
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,659 contributions

if you had the cash to do the improvements in advance, and the home appraises higher after the improvements, then you do a cash out refinance to get your cash back out, and so long as you're at 80% or lower, you would be ok.. It's a gamble though because the only way to know what the home will be worth after the improvements is to do the improvements and have it appraised.. It's possible you might not get all your cash back if the appraisal isn't high enough.. There's also FHA 203K, however this product does have MI...I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Oct 3rd 2012
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Barb Lanis (BarbLanis)
#70 ranked lender in Illinois - 663 contributions

Please clarify so we can all better answer your question regarding how much equity you have. What is your current mortgage balance and what is the current approx. value of your home? I think that will help all of us better serve you.

Oct 3rd 2012
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Ignacio L Taboada (itaboada)
#49 ranked lender in Georgia - 23 contributions

The maximun Loan to value for cash out refinance is 80% of the value of the house.It depends of how much is the balance in your existing mortgage.If you have any other questiosn do not hesitate to call.

Oct 3rd 2012
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

If you are at 80% equity right now and add anything to the loan will create MI. You can get a equity line for repairs.

Oct 3rd 2012
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