When you are looking to build, the last thing you want standing between you and your dream home is a bank. New build construction loans can sometimes be difficult to navigate, but you do have options to get the money you need to build your next home such as a home equity line of credit or a second mortgage (AKA a home equity loan). If you own one home and are planning a new build construction, you may be able to use your existing equity to pay the costs of construction. Our experienced, licensed loan originators at Anytime Finance can help you explore options to take out a second mortgage or home equity line of credit (HELOC) on your existing property to pay for the construction costs. When the build is done and you are ready to move in, the sale of your previous home pays off the balance of the HELOC. This option can be helpful if you are downsizing, have high equity in your existing home, or do not qualify for a traditional construction loan.

Flipping houses is not always as straight forward or glamorous as it looks on TV. However, it can be a great way to bring in a steady stream of investment income. To get started, you will need some cash to finance your renovation project. If you have built equity in your home, you may consider tapping that equity to fund your house flip. A home equity loan is essentially a second mortgage where you repay the loan over a fixed term (usually with a fixed interest rate). For the most part, interest rates and payments are fixed with a home equity loan, so your monthly payments will not fluctuate. Another option to use the equity in your home to finance flipping a house is a home equity line of credit (HELOC). A HELOC is a revolving line of credit that is also secured by your home. It resembles a second mortgage but functions much like a credit card in that you have a credit limit you can tap into as needed. HELOC’s usually come with a variable rate, but you can draw against your credit line whenever you need additional funds. You use the credit you need and make payments only on the amount you borrow. HELOC’s have many advantages such as financial flexibility, generally lower interest rates compared to hard money loans, and your interest payments may even be tax deductible!

Do you need to upgrade your aging kitchen, transform your tired bathroom or perhaps need another bedroom for your growing family? Renovations and home remodels such as these can be expensive but they can be funded with a home equity loan, usually at an interest rate far lower than what you would pay with a personal loan or by funding the renovations with your credit card. A home equity loan works by tapping your home equity to receive a lump-sum payment that you can use to pay for a remodel, renovation or other home improvement project. There are several benefits to using a home equity loan to pay for your home’s remodel such as having an upfront lump sum, return on investment, low interest rates (as lenders consider home equity loans to be less risky than unsecured personal loans or credit card debt), flexible terms such as the option of a long payback period as well as tax advantages in the form of a mortgage interest deduction (as the interest you pay on a home equity loan can be tax deductible which brings you savings come income tax time).