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If you're comparing 203k versus home equity loan for your remodeling project, then you're already well-informed. We want to share some information with you in this article so you're even more informed and make the best remodeling decision for your situation.
Once upon a time homeowners could get a home equity line of credit to make home improvements on their house, and make it feel like a new place. But a HELOC is no longer the optimum home improvement loan. The problem is that many homes lack the equity it would take for a bank to lend the homeowner enough money (or credit) to make decent upgrades, improvements or repairs. Also, a HELOC acts as a second mortgage. In today's market of low interest rates and a lot of homeowners refinancing, a second mortgage often presents a problem.