Need advice or info about home equity loan
Question: My wife and I have owned our house for just over a year. We bought the house on the low end and have made or will be making considerable improvements very soon, and the house is in a highly appreciating neighborhood and I’m confident that we can get a decent appraisal.
I’ll most likely need to add a room or two to the house because we are planning on having another child. I know I can obtain a home equity loan based on increase of the house’s value from our purchasing price. If I am seeking a home equity loan for the sole purpose of adding a room or two and increasing the value of the house, can I get a home equity loan based on the future value after the construction is complete? I’m confident that the increase of the houses value will exceed the construction cost, but I’m not sure how this works.
Answer: No, but you could probably get a home IMPROVEMENT loan.
Really, the best thing is to go to your local bank, explain to them what you want to do, and ask them what loan product would be appropriate.
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