I have some foundation issues in my home and received an estimate today for the repair costing around $50-60,000. He encouraged me to get other estimates, but basically I will need a trench dug, drain and sump pump installed in the back, an anchor to stop the back wall from continuing to get pushed in, and piers are needed up front to stop the house from continuing to settle, and potentially try to raise one side a bit, as I am looking at a large variance between the level of the floors inside (2.5 inches or so at its worst point).
I currently owe around 325,000 on the home. I am in a hot market area and the market value of my home right now is estimated around 543,000. I am considering selling the home and selling at a "reduced" (compared to market value) cost to factor in the cost of the repairs, to which I should still come out ahead, however I started a new job November of 2021 and am primarily a commission based earner. I am a W2 employee, not 1099, but have been told that I would need 18 months there before I would qualify for a conventional home loan. With 12 months bank statements showing commission earnings I could qualify for a "bank statement loan" but those interest rates are near 8% right now. I currently am at a 2.99%. I know I'm not going to be able to get anything that low, but taking an 8% rate on a mortgage just doesn't seem sensible, but my other option is to wait until May of 2023 to get a conventional rate.
My credit is solid, just below 800. I live alone and would not have a cosigner. My gross monthly income is between 14k and 18k monthly. If I paid for this repair out of pocket it would wipe out my savings completely. Is a HELOC my best option to fund the repairs, then sell it once I can qualify for a new home loan and try to recoup that cost? With the cost for rentals in the area, I really do not want to consider selling now and renting until I would qualify again. I have a 4 bedroom home and could rent out one of the rooms or the basement if needed, but really want to avoid that as well as I am 30 and don't want any roommates.
This is my first home and I have zero experience with this, or with HELOC's in general, so any advice would be appreciated.
Submitted August 29, 2022 at 10:32PM by Zeika4 https://ift.tt/hJf6k51
