You can borrow from a bank, savings and loan, credit union or mortgage banker. You can even borrow money online over the Internet. Here are the most common types of loans.
FHA Heading 1 These are mortgages insured by the Federal vlade.Najveća advantage of their high loan-to-value ratio (how much the value of your home you can borrow against ).
Pros
First Funding to the full value (100 percent) in your home
Second Competitive interest rates are usually rapid funding
Third Interest rates decline to the extent
4th The minimum score required
5th Available from most banks
Cons
First The largest loan limits (currently $ 25,000)
Second The money must be used for the functional repair or restoration (not to add the spa)
Third Home must be owner-occupied
Meet the LTV (loan-to-value) ratio, if you put your property up as kolateralna.LTV a percentage of the appraised value home lender will loan. For example, 80 per cent LTV on a $ 100,000 house is $ 80,000, the maximum credit. All lenders on real estate to live LTV limits. Some will lend only 80 per cent LTV. Some put the limit at 60 percent, while others go up to 90 percent or more. Also, be aware of CLTV (combined loan-to-value) ratio, which is based on the total of all mortgage loans on your property. Similar restrictions may also apply here.
credit cards
Credit credit card is probably the most expensive way to borrow. You can easily get a cash advance to pay for the costs of labor, materials or charge on your card.
Pros
Cash available to anyone who has a credit card to its limits
No estimates of required
Available everywhere
Cons
The highest rate of interest, often 18-24 percent
Interest can not refuse
home improvement loan
Home improvement loan is actually a construction mortgage on their property. Your home is collateral, and you are paid as work is done. Available from some banks and savings and loans, the loan is actually a second mortgage on their property. So you have two payments, your existing first mortgage and a new home improvement loan. Generally, you must maintain a loan-to-value ratio of 80 percent, but you can add the cost of building the value of your property.
Pros
First Usually, the full amount of restoration
Second Competitive interest rates
Third Interest rates decline to the limit
Cons
First Lender retains the money in stages as work is completed, often leading to significant delays
Second The money can only be used for the reconstruction project, not for living expenses
Third Home must qualify through the evaluation
4th The borrower must meet a lot of paperwork and come up with complete plans, estimates, and the list of performers
5th Home must be owner-occupied
home equity loan
Home equity loan is a home improvement loan that you put a second mortgage on their property. However, the use of money is not limited to home improvement.
Pros
First Can be used for any purpose
Second Competitive interest rates
Third Interest is usually deducted to the extent
4th Fast funding, usually within two weeks
5th Usually available as a revolving line of credit, allowing you to borrow up to a maximum at any time and return any amount at any time
Cons
First Usually limited to 80 percent of the loan value ratio (loan can-
Second there will be no more than 80 percent of your home value)
Third Often contains a substantial prepayment penalty, if you want to sell or refinance and home equity loan to remove
4th Home must qualify through the evaluation Home must be owner-occupied
Make sure the new mortgage offers more than the value of your home is usually advertised as 125 percent hipoteka.Kamatna rate is often higher than the going market rate. Furthermore, the IRS May Consider all or part of the amount to be a personal loan. Thus, the interest can be deducted from taxes, and loan May bind and property, and you personally.