Loan for renovation of NYC Co-Op Apartment ? (no HELOCs/mortgages)
August 5, 2014 8:24 AM Subscribe
Loan for renovation of NYC Co-Op Apartment? (no HELOCs/mortgages).
We're about to close on a pre-war co-op in Queens, NYC (yay). Renovation will likely cost us more than *double* what we had originally planned on spending (sigh).
We want to finance part of this reno, assume a ~$50k loan paid over 10 years. We would need the funds to be available by ~Oct 1 to pay contractors.
HELOCs are out, because of co-op rules, Re-Fis/2nd mortgages ditto, and Fannie-May Homestyle Mortgages where the reno is folded in are also out because we were too dumb to try and get one and have no time to re-fi (and again, co-op rules would nix it this soon after purchase).
What I've found thus far:
My go to would be the mortgage originator:
http://www.unfcu.org/product.aspx?id=313
8.75% fixed APR
Do you guys know of any other way to finance this size of loan for a reno? Banks/credit unions? Links to specific products/loans would be great. Thanks.
We're about to close on a pre-war co-op in Queens, NYC (yay). Renovation will likely cost us more than *double* what we had originally planned on spending (sigh).
We want to finance part of this reno, assume a ~$50k loan paid over 10 years. We would need the funds to be available by ~Oct 1 to pay contractors.
HELOCs are out, because of co-op rules, Re-Fis/2nd mortgages ditto, and Fannie-May Homestyle Mortgages where the reno is folded in are also out because we were too dumb to try and get one and have no time to re-fi (and again, co-op rules would nix it this soon after purchase).
What I've found thus far:
My go to would be the mortgage originator:
http://www.unfcu.org/product.aspx?id=313
8.75% fixed APR
Do you guys know of any other way to finance this size of loan for a reno? Banks/credit unions? Links to specific products/loans would be great. Thanks.
Best answer: This is going to be an unsecured loan, since it doesn't sound like you'd be able to use the co-op as collateral per your co-op's rules.
My first suggestion would be to check with your bank for a personal loan. 8.75% is pretty good though. Check bankrate.com for personal loan rates in your area.
My second suggestion would be to check the peer-to-peer lenders like Lending Club or Prosper.
I have no experience with Prosper, but I currently have a loan with Lending Club. They have a two week application/funding period, so you'd definitely be able to get the funds by October 1st. However, they have a maximum loan amount of $35k, and the interest rate may not be as good as 8.75% (depending on your credit score). You'd have to get your other $15k somewhere else. MeMail me for a referral link if you decide to go with them.
posted by tckma at 8:42 AM on August 5, 2014
My first suggestion would be to check with your bank for a personal loan. 8.75% is pretty good though. Check bankrate.com for personal loan rates in your area.
My second suggestion would be to check the peer-to-peer lenders like Lending Club or Prosper.
I have no experience with Prosper, but I currently have a loan with Lending Club. They have a two week application/funding period, so you'd definitely be able to get the funds by October 1st. However, they have a maximum loan amount of $35k, and the interest rate may not be as good as 8.75% (depending on your credit score). You'd have to get your other $15k somewhere else. MeMail me for a referral link if you decide to go with them.
posted by tckma at 8:42 AM on August 5, 2014
The opportunity costs are great (as is the risk of taxes if you leave your job and have to repay), but a 401k/TSP loan is a possibility.
posted by Jahaza at 9:05 AM on August 5, 2014
posted by Jahaza at 9:05 AM on August 5, 2014
Oh, the other thing to think about: have you asked your attorney (I hope you're using an attorney for a co-op purchase) for any recommendations? I doubt you are the first person to have this problem, and if you have an experienced/resourceful attorney, he/she should be able to help you find a solution.
posted by dfriedman at 9:30 AM on August 5, 2014
posted by dfriedman at 9:30 AM on August 5, 2014
This thread is closed to new comments.
posted by dfriedman at 8:41 AM on August 5, 2014