Just like a traditional loan, you can leverage a special type of renovation loan to pay a low interest rate and tap into 75 percent of the home price plus renovation costs or the as-completed appraised value. You can pull out up to 97% of LTV (loan to value) with certain eligibility requirements.
Minimum Credit Score: 620
Minimum Down Payment: 5%
Loan to value: Up to 97 LTV
That means if your home is $200,000, and if the new modular home adds $100,000 in value, you could take 75% of the total sum of $300,000. The funds that you could use for the modular home would be $225,000.
Here are some other examples:
We offer a smart alternative to a traditional loan or line of credit by letting you convert existing equity in your home to cash. Unlike a loan, there are no monthly payments, fees, or interest charges. We’re able to do this by extending a cash payment to you today (for up to 17.5% of its current market value) in exchange for an option to purchase a percent of equity in your home in the future. You make no payments to us until you sell your home, or 30 years pass. When you move, you send us a predetermined portion of your home’s appreciated value, plus the initial payment amount we gave you.
Cash out amount: up to 17.5% or $500k
Interest / Fees: None
Loan Type: Equity based
Here are some scenarios: