How Much Can You Borrow with a Florida Home Equity Loan?

Those that are not currenly thinking about any Florida home loans may have renovations on the mind instead. Many homeowners in this climate are delaying buying or selling and trying to fix their current residences instead.

If this sounds like your situation, there’s a good chance you’re contemplating the use of a Florida home equity loan, right? Let’s discuss how much you’ll be able to take out.

Properly gauge your Florida home mortgage

If you have enough equity in your home to cover the loan you need, the state of your renovation project shouldn’t be a problem. You’re free to use the money from a Florida home equity loan for any purpose. Most lenders will lend you an amount equal to 100 percent of your home value, while some will even lend up to 125 percent if you have a good credit score.

However, if your renovation is only partially completed when you apply for the loan, this could cause difficulties in appraising the house accurately. This could then affect the amount of money you’re able to borrow. Some lenders offer Florida home improvement loans that allow you to receive the money in stages during the renovation process, based on inspections. Don’t forget about these options.

Time for Florida home loan refinancing?

Another option is to consider Florida home mortgage refinancing for a higher amount, taking a cash-out payment to fund your renovation project. If your credit score is lower, you may be able to get more cash to pay for your renovation by refinancing your first mortgage versus adding a home equity loan.

When considering this approach, you need to weigh the benefits of receiving more cash out versus the change in your total monthly payments and interest rate on your new Florida mortgage loan. This is usually worthwhile only if current mortgage rates are close to the rate you have now.

You may still be able to receive approval on a home improvement loan if you don’t have enough equity to borrow all the money you need via a home equity loan. It depends on your credit rating. You may also be able to get enough funds to make up the difference through a personal loan or line of credit.

These Florida home mortgage loans also carry a higher interest rate because they aren’t secured by your home and the interest payments are not tax-deductible, like the interest on a home equity loan. However, the set-up fees are usually lower.

Complete our COST-FREE, RISK-FREE form now and we can talk about this more at length.