Line Of Credit?

Comments(8)

• 
  focusonmoney11th January, 2005

  I notice i posted my question wrong...
  
  Let me keep it simple.. basically i want to take out a line of credit on the same property that im rehabbing to fix it up.
  Is that possible?

• 
  Young_Inno_Vative11th January, 2005

  yes ofcoarse...there are specific loans for such a venture
  talk to your lenders if they offer any...youll find a bunch
  they usually offer 70% of the ARV(after repair value) but this can vary depending on the lender...70% is pretty standard
  good luck
  ~Andrew

• 
  focusonmoney12th January, 2005

  line of credit and home equity loan is the samething right?
  
  and you said they will lend up to 70% arv...this where i got confuse..i thougth they will only loan the amount of equity thats left in the house... can you explain to me please..
  
  thanks for the help..

• 
  myfrogger12th January, 2005

  A bank will typically only loan to a percentage of the appraised value of the property depending on your financials. If you are looking to fix up a property, you'll want to find a construction type loan in which you can buy the property and take draws to pay for the work as it is completed and inspected.

• 
  focusonmoney12th January, 2005

  So the construction type loan would be seperate from the loan im taking out to pay for the house? or the construction type loan pays for the house and the work to fix up the house??
  
  
  thanks for the help...

• 
  focusonmoney12th January, 2005

  ????????

• 
  nic345612th January, 2005

  Do you have to have an appraiser determine the ARV? or do you just make your best guess? How do banks determine ARV??

• 
  kburke12th January, 2005

  focusonmoney,
  You should only need a construction loan. Typically the lender will give you a certain amount of time to complete the rehab and give the contracter draws at specified times. Once the rehab was done I had to do a little paperwork but it transfered to a typically loan.