OPM (other people’s money) is a great way to pay for your reroofing project. At MRC Roofing, we partner with two kinds of lenders providing personal (signature/credit) loans up to $100,000 and HELOCs (home equity lines of credit). Let’s explore each.
PERSONAL LOANS
These are loans based mainly on your credit and debt to income ratio (DTI). They are also called signature loans because they don’t require any collateral. This is a great option if your property is already being used as collateral for a different loan, or if your property’s current mortgage is new and has a low loan-to-value (LTV) ratio, meaning you don’t have any equity in your home yet to borrow against. MRC’s personal loan partner specializes in just this kind of scenario nationwide.
Here’s an example. Say you need $20,000 for urgent reroofing needs and you meet the following criteria:
• Before Tax Income = $100,000 per year
• DTI Ratio = 51 percent or better
• No bankruptcy within the last two years
• Term = 180 months
• Annual Percentage Rate (APR) = 8.99 percent
• Monthly approximate payment = $202.
HELOC LOANS
These are also called cash-out refis and usually require your home to be put up as collateral in order to qualify for this particular type of conventional loan.
You can usually borrow up to about 80 percent of the value of your home minus the amount still owed (equity).
Here’s an example. Say you need $20,000 for urgent reroofing and you meet the following criteria:
• Maximum combined loan to value ratio is no more than 90 percent. (Example: Current value of your home is $400,000 and your first mortgage balance is $300,000+new HELOC of $20,000. Here are the calculations: $300,000+$20,000=$320,000, divided by $400,000=80 percent CLTV.)
• Minimum credit score of 680 (varies from lender to lender)
• Employed for minimum two years
• Monthly approximate payment towards the cash-out portion = $190.
Financing your home improvements is a great way to avoid large out-of-pocket expenses during uncertain economic times such as now. If your roof is experiencing emergency leaks or there is continual storm damage to your existing roofing material, let MRC Roofing come and evaluate your situation. We offer a free reroofing estimate and guide you to a lender that may be able to finance your roof and provide you with a loan or cash out for more than the cost of your new roof with cash you can put towards other repairs also.
Contact MRC Roofing LLC (license No. C-31624) at 842-4464, or visit mrcroofinghawaii.com or email mrc@mrcroofing.com.
MRC ROOFING
CONTACT 842-4464
EMAIL mrc@mrcroofing.com
WEB mrcroofinghawaii.com
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