Reply to I don’t understand how my neighbors are paying for their renovation

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We live in a neighborhood of 1.5-3 mil homes (think Tulip Hill, Mohican, Glen Echo Heights) and there are quite a number of people living in their parent's houses, paid for long ago, who are sitting on lots and homes with a massive capital gains. Pretty easy to get a HELOC or equity loan for 500-700 and still not approach 80% LTV[/quote]

My parents live on a lot of land in this area. They want me to do this. Any resources on this? I didn’t realize so many people did it. [/quote]

You just go to a bank and say you want a home equity line of credit for X dollars with X being less than 80% of your home’s value [/quote]

My co-worker said him and his wife did that with their in-laws house. Basically, his wife grew up there and they decided to make a in-law suite and revamp the house. So, you're saying that they basically took out a loan to do this? Who's name is on the house? The parents? [/quote]

The loan is secured by the house so the person whose name is on the deed is the only one who can do this. It’s basically just borrowing against your equity in the house. [/quote]

How are people doing this if the home is owned by their parents? [/quote]

Either their parents took out the HELOC and the kids are just paying it off or they transferred ownership of the house to the kids so they could get the loan. [/quote]

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