When I get a home loan, can I take out more than the price of the home for renovations?

Update:

I am doing this alone, no partner, husband, etc. Cost of the house is 65,000 but I want to build a garage and put up a fence for a dog.

3 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    Are you securing the loan with something else as well?

    Example. Total assessed value of property = 1 million

    Value of loan = 1.5 million

    If person runs off tomorrow then the bank is screwed half a million.

    Bad idea neh?

  • 1 decade ago

    There are loan programs that will provide additional funds for repairs or renovations. Talk it over with your loan officer. The work needs to be approved by the lender and they will require that the funds be paid out to the contractor(s) through escrow. If you're looking at an FHA loan, look into their 203k program.

  • 1 decade ago

    yes you can

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