Quote:
Originally Posted by pcm333
Would it be possible get a home equity loan to finish the construction of a new home that i started by paying for out of pocket?
I'm not sure how much i can cover but let's say 30% of the total cost of construction.
It terms of overall costs and interest percentage, would this be better than getting a home construction loan that roles into a mortgage with a one time close for the entire project?
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You MIGHT be able to do that. It depends on the bank and the banker you're dealing with, plus a lot of other things. You're going to have to provide a convincing argument that is backed up with facts and data to convince most bankers. You'll need a timetable and a good cost estimate that is realistic for completing the job, and you'll need some comps to prove what the house will be worth when it's complete.
I think that if you're well prepared and have a good presentation to make to the banker (along with reasonable assumptions), you might be able to do so. Of course, you'll also need excellent credit and a good reputation for making sound decisions. If it appears to the banker that you're just some doofus that started work on a project with no idea how much it would cost, no idea of where you would get the money to complete it, and no reasonable idea of when it would be completed or how much it would (realistically) be worth when it was complete, then your chances of getting a loan to finish the project are between slim and none.
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