MommaG asked:
My home was built by Habitat for Humanity and I have a zero percent interest loan we are looking to do an addition but we are not sure how Home Equity loans work. Will it matter that my house has no interest on the loan? I asked the bank and they weren’t much help other than we would have to fill the application out first. Just Curious Tnks
To add some details to the response about taking advantage of the system… I was 21 when my daughter and I built and moved into our home. I refused to pay the expensive rent and lived in the apartment attached to my parents home when I heard of habitat and when they came out and reviewed that yes it would be worth my while to get into my own home since I had good credit and a good job at the time in the claims field I was approved. Habitat is completly different than like Hud Housing. Three years ago I got married to a man who puts his 40 hrs in a week as well and we had a son and are adding a bedroom. I am not taking advantage nor is anyone paying my bills and I am not worried about losing my home I was just asking this to be a little more informed before we start looking at loans Tnks
Derrick
My home was built by Habitat for Humanity and I have a zero percent interest loan we are looking to do an addition but we are not sure how Home Equity loans work. Will it matter that my house has no interest on the loan? I asked the bank and they weren’t much help other than we would have to fill the application out first. Just Curious Tnks
To add some details to the response about taking advantage of the system… I was 21 when my daughter and I built and moved into our home. I refused to pay the expensive rent and lived in the apartment attached to my parents home when I heard of habitat and when they came out and reviewed that yes it would be worth my while to get into my own home since I had good credit and a good job at the time in the claims field I was approved. Habitat is completly different than like Hud Housing. Three years ago I got married to a man who puts his 40 hrs in a week as well and we had a son and are adding a bedroom. I am not taking advantage nor is anyone paying my bills and I am not worried about losing my home I was just asking this to be a little more informed before we start looking at loans Tnks
Derrick
Katie
It won’t, but understand, that according to Habitat’s guidelines, if you get a Home Equity Line of Credit (which are almost always at variable interest rates), and you lose the home b/c you can’t pay for it….you will NEVER qualify for another Habitat house.
This is a huge problem that Habitat is facing right now…not trying to be mean, but that option was given to you to get you out of the rental business and into home ownership. You got that 0 rate because you were low-income…the rest of us have to pay for our own interest rates.
Don’t take advantage of the system.
Comment by Expert Realtor — March 21, 2010 @ 7:24 am