Loan Options for Kitchen Remodel.
By
on
February 5th, 2010
I was thinking of remodeling my kitchen to add value.I would like a loan for this. Nothing more than $20,000 that I just don’t have at the moment. I don’t believe I can get a Home Equity Loan, cause I have no equity.
(300k loan, zero down, and the place dropped 35K in value in 3 years)
What other loan options do I have. I have great credit and always pay my mortgage on time. I just don’t have 20k.
philospher77 says:
If you don’t have the 20k, I would look at doing what you can afford. Right now if you sold your house, you’d have to bring at least 35k to the table to cover the drop in your home’s value, and you want to add another 20k to that deficit. There are things that you can do to raise the value that don’t cost as much: paint, new knobs/pulls, refacing the cabinets instead of replacing them.
If you really want to take out the loan, you would have to convince a bank to do a personal loan or put it on a credit card.
February 5th, 2010 at 12:29 pm
acermill says:
Since you have negative equity, chances of any loan using the home as collateral are NIL. Neither will you be able to refinance without bringing huge amounts of cash to the table. Understand, as well, that spending $20K to remodel your kitchen will NOT add $20K to your property value. There are NO improvements which return value increase dollar for dollar spent. Unless you NEED to remodel the kitchen, hold off until you have the cash available.
February 5th, 2010 at 1:09 pm