I live with my parents on a large property and I%26#039;d like to convert a large 3 car garage into a 2 bedroom cottage. Is there a way to finance the construction? It would be less than $100,000. I do not own the land or the main home. Any suggestions would be helpful!
Financing home construction?
Your parents would have to be on the financing with you.
Keep in mind, you%26#039;ll likely not be adding $100K in value to your home, even though you%26#039;re spending that much. Problem is, not many buyers would have a need for such a major 2nd housing unit like that on their property. Might be limiting the buying pool significantly.
But it%26#039;s certainly possible they could get a construction loan to do this. Shop around local banks and brokers and find someone who has a lot of direct experience with construction lending, which most loan officers have never, ever done.
Financing home construction?
No one will give you a loan to finance construction on a home that you do not own, much less have equity in. If your parents own the home and if they have equity in it, then they should apply for a home equity loan. If they don%26#039;t have enough income, you could co-sign or guarantee the loan.
Also, before you even begin attempting to get a loan you should check local zoning laws. In a lot of cities, zoning laws would prevent you from converting that structure into a dwelling.
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