We have been working for years rebuilding credit, so that we can qualify for a loan to fix our 112 year old home. We now have an 'A' credit score, but the house isn't worth what we still owe on the mortgage. We estimate that it will take 2 times that amount to make it liveable. There are foundation, plumbing, electrical, door, window, floor rot and many other problems. Doesn't the bank only grant a certain loan-to value? If so, how would they determine that in a house like ours and how would we ever get enough money to start? One problem would lead to another. We couldn't just fix one thing at a time. If we could, we would have been doing that all along. But we live check to check.
Incidentally, we still owe $54000 on this home to be paid over 18 more years. It's restored value would be around $100,000 in our area. We estimate it will need at least $100,000 in work.
Read more: What amount of home improvement loan can we expect on a home in disrepair?
