loan for house repairs

Discussion in 'Private & Conventional Lending Discussion' started by kgord, Aug 31, 2015.

  1. 111kg

    111kg Guest

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    Well, first of all, there are other ways of doing this. L_B said it right: why don't you learn to do it by yourself? There are tons of tutorials on Youtube and I bet you can find free paint on Craiglist, depending on where you live. Rather than getting another loan that would potentially decrease your credit even more, doing it by yourself would be way better, not to say that by doing this, you'd learn how to do it; and then you'd even be able to create a side income, because there are hundreds of other people looking for services like these.
     
  2. pwarbi

    pwarbi Senior Investor

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    Obtaining a loan for any purpose these days is very hard, and that includes the people that HAVE got a good credit history. The one thing in your favour is that you have an asset there that can be loaned against on. First thing I would do is get a valuation done on how much your property is worth now, a price for all the repairs, and then a predicted price of what it would be worth after the repairs are complete.

    That way, if there is equity in the property people will be more willing to look at a loan agreement, but they may insist that you do put the property up for sale after the repairs have been done, that way they at least have a guarantee they'll get their money back from the property sale.

    If your determind to sell the property anyway you'd be willing to agree to that sort of an arrangement I assume?
     
  3. missbishi

    missbishi Well-Known Member

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    I'd go for a cheap cosmetic job. Scour the classifieds for free supplies, ask around for leftover paints and see if anyone can lend you the tools. Perhaps hire a sander for the day for the porch and deck then use a basic wood treatment. As long as it's clean and neat, it'll make a good impression.
     
  4. Corzhens

    Corzhens Senior Investor

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    Credit background is a basic requirement for loan applicants. The bank will not entertain your application if you have a bad record particularly that related to bad debts. When a friend applied for a loan with their ancestral house as collateral, he was very expectant of approval since his loan is just a fraction of the value of the property. But his credit record was uncovered that he had a credit card obligation left unpaid for 2 years, such a small amount in a few thousand. That did him, no approval came.
     
  5. ethanscott

    ethanscott Member

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    Hey kgord!
    There is no need to go to the extent of crowd-funding to refurbish your home. In fact, an idea put forth for home repairment on the crowd-funding platform would invoke a very lacklustre response. Instead, I suggest that you take out a personal loan to fund the repairments. Since you would be deducting the foundation repair cost from the asking price, I think a major chunk of your expense gets sorted there. Now, your only worry is painting the house and resurfacing the porch. You do not have to go overboard with these things as they require constant touch-ups and "sprucing up". Get the house painted and a basic refurbishing done, but make sure that it lasts till spring as after that anyways we are hoping that your house would be out for sale. However, you mention that you do not have a good credit score. This might come across as a big hurdle in availing any loan facility, especially from a bank. But fret not as there are plenty of other money-lending financial institutes in the market that provide a loan for personal needs. These type of personal loans are granted either by taking some collaterals against it or are sometimes unsecured (no collateral taken against the loan). However, unsecured personal loans charge a high interest rate. Kindly consider all these factors before taking a loan for house repairs.
    I hope this answer made things clear for you :)
     

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