Hi all
Just a something i cant seem to get my head aroun at the moment.
we currently have i line of credit and are looking to buy some older houses and lrenovating them the way i see it we basically have 2 options.
1. reduce the line of credit to increase our borrowing power (eg. loc limit = 200,000 reduce it to 150,000)
2.use the money we have avaliable to us in our line of credit to renovate the houses we are about to buy.
we both have differing points of view.
how easy is it to get finace for renovations once you have the house ?
we’re close to our borrowing limit and don’t know which way to go
any comments would be great
thanks
Nick
I think the best way forward may depend on what you are currently using the LOC for. If you have having your wage etc put in, then you probably should not use it for investments.
If you just have it sitting there, or have only used it for investments, then you could just take the deposits from this LOC and borrow the remainder, 80%, from another lender securred on the new house. The renovation money can come from the LOC too.
It can be hard to get money specifically for renovations. Lenders often want to know what you will use the money for and want to see council approvals etc.
Terryw
Discover Home Loans
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