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On my conventional mortgage can I borrow extra for interior upgrades?

by dcxtreme982 from Howell, New Jersey. Aug 10th 2015 Reply


William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

More info would be needed, specifically, are you purchasing a home or are you refinancing? In either case, there is a conventional loan product call the "HomeStyle" Renovation loan. With this loan, you can include upgrades into your loan and there are no restrictions as to what you can do. The work will have to be done by licensed contractors, and funds are held and distributed through escrow, and your still limited to "Loan to Value" restrictions, but yes.. there is a loan that allows you to do it.. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Aug 10th 2015
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,106 contributions

Yes, just depends on if you qualify for it or not. You should speak with a local loan officer or two and have them review your situation to see what would be the best option and to get you pre-approved. Best wishes, Sean

Aug 10th 2015
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Mark Hemingway (SFSLend)
#1 ranked lender in Colorado - 534 contributions

If you are doing a refinance and you have the equity in the property then you can do what is called a cash out loan. That will affect what your final rate will be but if it benefits you to the point of what you are wanting to accomplish. You could also look at options for a home Equity Line of Credit but try and find a bank that offers a rate fixed for 3 to 5 years. In Colorado there are several banks that will lock the rate in for 5 years so that then gives you that time to get it paid down substantially or paid off. Be cautious of obtaining a Home Equity Line of Credit that can adjust monthly as the Fed is showing sings of raising the Fed Funds rate at least once this year and then more than likely additional increases next year. These Fed Fund rate increases directly affect prime rate for HELOCs and therefore rate would go up immediately unless you get it locked for a period of time.

Aug 10th 2015
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Lorne Harvey (lorneharvey)
#1 ranked lender in Washington - 418 contributions

The answers provide here are all correct! You can do a "cash-out" refinance.

Aug 11th 2015
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