home improvemt loan with little or no equity question

If you were buying the property now, FHA203 might be an option but since you already own, and you say there's not much equity, it's going to be nearly impossible to obtain cash through refinancing. Sounds like your cash flow is in good shape if you're able to put that much away every week. I'd say slow your timetable down and make improvements that you are fairly certain will increase your property value, just in case you need to sell over the next five years. You could always do the credit card thing but that may be more trouble in the long run than it's worth if your income would change for any reason. Best of luck to you!http://www.NetEquityLoans.com

I specialize in the FHA 203K and it is the only affordable product available currently for your project. The two caveats that I would propose are the following: Your financing is capped at 110% of the after improved value and self help requires the proper licensing and typically only allows for reimbursement of materials unless the work is subcontracted but again you more likely need to be a GC. I am available to discuss in detail at your convenience Wednesday on as end of month closings have my plate full currently. Continue saving look for comparables sales to what your finished home will be and keep in mind you can expect your taxes to go up after improvements and you will have to qualify for the new mortgage payment for your owner occupied home.

You could refinance using the FHA 203K. Here are the positives... you can add your construction costs into your loan, capped at 110% of its future value. If you can get the addition, deck and other upgrades within that cap, then it's a possibility.. The negatives... You will pay FHA a 1.75% upfront premium, added to your loan.. You will pay $285 per month for mortgage insurance added to your payment.. You cannot add a pool using FHA 203K. You have to use Licensed, insured contractors.. You cannot do the work yourself, unless you are the contractor holding the license, and insurance. You cannot use someone who works for a licensed contractor.. You have to hire the contractor to do the work... you will also pay for an FHA consultant at a fee of approximately $1000 to $1500 whose job is to verify that the work is done correctly and within FHA guidelines.. It sounds like you might be better off doing what you're already doing.. You might not get it done as quickly as you like, but it will be at a much lower cost... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

There are several good thoughts already stated above that I will reiterate and/or expand on. An FHA 203k loan is your best option here for financing with no equity, but that is if your improvements increase your value enough to fit within the 110% of after improved value cap. If you can trim down the financed work to no more than $35k (which includes a 10% contingency fund), then you can do the 203K Streamline program, which will be easier on the paperwork and bids, etc., and you can avoid the costs of the 203k consultant. You will need to hire contractors, preferably just a General Contractor to supervise everything, though; if you're qualified, then you can do the self-help agreement, but otherwise, plan on paying a contractor (if your dad or brother qualify, that works fine). The caveat here is some jobs are not acceptable to be financed in the Streamline program; decks are typically okay, but pools are not...driveways are not, but patios are...I think the suggestion of financing the pool through the pool company is a good idea, if they have good terms; because it is financing for "substantial improvement to your home," it still may count in your mortgage acquisition debt for the purposes of the mortgage interest deduction on your taxes...see IRS Pub 936. Of course, you'll want to verify they do not tie it as a lien secured against your home, first, so you don't cause yourself trouble with mortgage refinancing along the way. I would suggest asking for market/value advice from the Realtor who helped you buy it, and go back to your prior loan officer to get more details about the FHA 203k loans...if he/she is unfamiliar with them, ask your Realtor for a specific referral to another loan officer who does know/do these loans.