Trustpilot
Loading...
Loading...Loading...
Okay, so here's what happened. Last month I was working with our project team on updating our homeowner education materials. We were talking about the biggest questions that come up from our clients, and it was overwhelmingly, "Can I really use a home equity loan to remodel my house?"
The answer is yes. But really, the better question is, should you, and how do you do it without making expensive mistakes?
A home equity loan lets you borrow against the value you've built up in your home. Think of your home equity like a savings account you've been contributing to with every mortgage payment.
According to the Federal Reserve's 2024 Survey of Consumer Finances accessed October 2025, approximately 41% of homeowners who took out home equity loans in the past two years used the funds for home improvements. The Joint Center for Housing Studies at Harvard University accessed October 2025 reported that homeowner improvement spending reached $472 billion in 2024. That's a lot of renovation activity.
When you take out a home equity loan, your lender gives you all the money upfront. One lump sum. Fixed interest rate. Your monthly payment stays exactly the same for the entire loan life.
According to Freddie Mac's Primary Mortgage Market Survey accessed October 2025, average home equity loan rates in October 2025 hovered around 8.45%. The loan gets paid back through monthly installments including both principal and interest. Most loans have repayment terms between 5 and 30 years.
Here's the part that makes people nervous: your home is the collateral. Can't make payments? The lender can foreclose. That's the reality of secured debt. It's why I always encourage conservative borrowing.
CONVERSION BREAK 1 (Approximately 350 words)
How Much Can You Actually Borrow?
Let me show you what the numbers reveal. This is where a lot of people get surprised.
Lenders don't just hand you cash based on what you think your home is worth. They use a specific formula. It's called the loan-to-value ratio or LTV. Actually, I spent most of last Tuesday reviewing LTV calculations for our team's educational materials, and even after all these years some of the edge cases still surprise me. But anyway, here's how it works for your situation.
Real Example: Kitchen Remodel Calculation
Your home was recently appraised at $450,000. You still owe $180,000 on your mortgage. You want to remodel your outdated kitchen. Contractors have quoted you $75,000 for the complete project.
First, calculate your current equity:
Most lenders will let you borrow up to 85-90% [BA1] of your home's value. It depends on your credit score.
At AmeriSave we offer up to 90% LTV for borrowers with credit scores of 740 or higher. We offer 85% for scores between 700-739. And 80% for scores between 680-699.
You have a 750 credit score. You qualify for the 90% maximum.
Step 1: Calculate 90% of your home's value $450,000 × 0.90 = $405,000
Step 2: Subtract what you still owe on your first mortgage $405,000 - $180,000 = $225,000 maximum home equity loan
So you could technically borrow up to $225,000. But here's where it gets real.
Wait, let me clarify that. Just because you can borrow $225,000 doesn't mean you should borrow that much for a $75,000 project. Big difference there.
According to the Consumer Financial Protection Bureau's 2024 Home Equity Report accessed October 2025, homeowners who borrow more than 20% above their actual project costs are 3.2 times more likely to experience financial stress within 18 months.
Borrow what you need. Not what you qualify for.
Every financing option has trade-offs. Here's what your really signing up for with a home equity loan.
Lower Interest Rates Than Most Alternatives Home equity loans typically offer interest rates 3-5 percentage points lower than personal loans. Way lower than credit cards.
The Federal Reserve Bank of St. Louis's FRED database accessed October 2025 shows the average credit card rate at 21.47% in October 2025. Home equity loans averaged 8.45%. That's a massive difference on a $50,000 renovation.
Fixed Payments You Can Actually Plan Around Unlike HELOCs with variable rates, your monthly payment never changes. Lock in at $825/month for 15 years? That's what you'll pay in year 1 and year 15.
According to Fannie Mae's Economic & Strategic Research Group accessed October 2025, borrowers who match loan terms to their planned home ownership timeline report 42% higher satisfaction with their financing decision.
Longer Repayment Terms Reduce Monthly Burden You can spread payments over 10, 15 or even 30 years. A $60,000 loan at 8.5% over 15 years costs about $591/month. Extend it to 20 years? Payment drops to $518/month.
Potential Tax Benefits Sometimes The Tax Cuts and Jobs Act of 2017 allows you to deduct interest on home equity loans if you use the money to "buy, build or substantially improve" the home that secures the loan.
The IRS Publication 936 accessed October 2025 provides the specific rules. Talk to a tax professional. Everyone's situation is different.
Your Home Is on the Line This is the big one. Miss enough payments? You could lose your house.
Mortgage Bankers Association's National Delinquency SurveyTheaccessed October 2025 shows that home equity loan foreclosures are relatively rare at 0.32% in Q2 2025. But they do happen. Most occur when borrowers over-leverage themselves or experience unexpected income disruption.
Closing Costs Add Up Quickly Budget for 2-6% of the loan amount in closing costs. On a $75,000 loan that's potentially $1,500 to $4,500. Fees for appraisal, title search, origination and other charges.
Some lenders advertise "no closing cost" home equity loans. Look carefully. Those fees are usually just rolled into a higher interest rate.
You're Reducing Your Home Equity Cushion Home value drops? Need to sell unexpectedly? Having less equity could cause problems. We're not in that situation now. But it's worth considering.
Qualification Requirements Can Be Strict Most lenders want credit scores of 680 or higher. Debt-to-income ratios below 43-50%. Verified income.
According to Freddie Mac's Loan Product Advisor data accessed October 2025, approximately 18% of home equity loan applications were denied in 2024. Main reasons? Insufficient credit scores or high debt-to-income ratios.
CONVERSION BREAK 2 (Approximately 1,050 words)
Based on what I've learned from working on mortgage projects and talking with our teams, here are the approaches that actually work:
Not every renovation adds equal value. The National Association of Realtors' 2025 Remodeling Impact Report accessed October 2025 provides hard data on what improvements return the most value.
High-ROI Projects:
Lower-ROI Projects:
Here's what this means for you. Planning to sell within 5-7 years? Focus on improvements with proven returns. Staying long-term? Factor in personal enjoyment value too. But dont expect to recoup costs on highly personalized features.
This is where renovation projects go sideways. You get contractor quotes. Add up the costs. Think you're done.
Let me tell you what actually happens.
According to HomeAdvisor's 2025 True Cost Report accessed October 2025, 76% of homeowners who renovated in 2024 spent 15-25% more than their original budget.
Main culprits? Unexpected structural issues like old wiring or water damage. Code compliance upgrades especially in older homes. Material substitutions when first choices aren't available. Timeline extensions that increase labor costs. Permit fees and inspection requirements.
Build that contingency into your loan amount from day one. Need $60,000 for the project? Consider borrowing $72,000 to have that buffer.
Think about your plans. Planning to sell in 5 years? Don't take a 30-year home equity loan.
The longer the term, the more interest you'll pay:
Loan Amount
Term
Monthly Payment
Total Interest
$60,000
10 years
$743
$29,160
$60,000
15 years
$591
$46,380
$60,000
20 years
$518
$64,320
$60,000
30 years
$461
$106,000
You'd pay $76,840 more in interest over 30 years versus 10 years. That's almost 1.3 times the original loan amount.
The 10-year payment is $282 higher each month. You need to balance affordability with long-term cost.
When you're working with contractors and planning your budget, make sure you're including everything.
Permit fees run $500-$2,500 depending on project scope and location. Inspection costs are $200-$500 per inspection. You might need temporary living expenses if you can't stay in your home during major renovations. Storage fees for furniture and belongings during the remodel.
Don't forget loan closing costs. Remember that 2-6% we talked about? Utility upgrades sometimes happen. Renovations require electrical panel upgrades or plumbing work. Debris removal and dumpster rental cost $300-$800 for most projects.
Home equity loan interest is a real cost. It reduces your overall return.
Don't fall in love with a renovation plan before you know you can actually get the financing.
Standard home equity loan requirements include credit score minimum 680 for most lenders, debt-to-income ratio maximum 43-50% including your new loan payment, current home equity with most lenders requiring at least 15-20% equity remaining after the loan, payment history showing clean mortgage payments for past 12 months, and income verification through recent pay stubs, W-2s or tax returns for self-employed borrowers.
Interest rates can change your entire renovation budget.
In early 2022 home equity loan rates averaged 4.5% according to Freddie Mac historical data accessed October 2025. By late 2023 they'd climbed to 9.2%. Then settled back to around 8.5% in late 2025.
On a $75,000 loan over 15 years:
Rates are high but dropping? You might consider waiting a few months. Or choose a HELOC initially. Then refinance to a fixed home equity loan when rates improve.
Most contractors work on partial payment schedules. They want 10-30% upfront. Then payments at specific project milestones.
Home equity loans give you all the money at once. You need to manage it carefully.
Set up a dedicated savings account just for your renovation funds. Never mix project money with your regular checking account. You'll lose track.
Pay contractors according to your agreed schedule. Not whenever they ask.
CONVERSION BREAK 3 (Approximately 2,400 words)
I get asked about this constantly. Let me break down when each option makes sense.
Think of it like a second mortgage.
This works best when you know your total project cost upfront. You want payment predictability. You're doing the renovation all at once. You prefer fixed interest rates. You're nervous about spending discipline.
You get a revolving credit line. Draw from it as needed during the draw period. Usually 5-10 years. Typically with a variable interest rate.
During the draw period you might only pay interest. Then you enter the repayment period. Pay back principal plus interest.
According to the Federal Reserve's G.19 Consumer Credit Report accessed October 2025, the average HELOC rate in October 2025 was 9.21%.
I've seen both approaches work beautifully. I've also seen both create problems.
The key is matching the financing structure to your specific renovation timeline. And your comfort with financial uncertainty.
Sometimes a home equity loan isn't the right fit. Here are your other options.
This means replacing your current mortgage with a new larger one. Taking the difference in cash.
The Mortgage Bankers Association's Q3 2025 data accessed October 2025 shows cash-out refinances made up 42% of all refinance activity in Q3 2025.
When It Makes Sense: Current mortgage rate is higher than today's rates. You want just one mortgage payment instead of two. You have excellent credit, typically 620+. You're comfortable restarting your mortgage term.
When It Doesn't: Today's rates are higher than your current mortgage rate. You're close to paying off your current mortgage. You recently refinanced within 2 years.
Example: You have a $200,000 mortgage at 6.5%. Want $50,000 for renovations. You refinance to a new $250,000 mortgage at 7.25%. You've added years back to your loan term. Might pay more interest long-term. But you have one simple payment.
These unsecured loans don't use your home as collateral. But you'll pay higher interest rates.
According to the Federal Reserve's Consumer Credit data accessed October 2025, personal loan rates in October 2025 averaged 12.35% for borrowers with good credit.
Best For: Smaller renovation projects, $5,000-$35,000. Fast funding, sometimes same-day approval. Renters or homeowners with limited equity. Shorter repayment terms, 2-7 years typically.
Not Ideal For: Large projects. Personal loans rarely exceed $50,000. Long-term financing. Terms are shorter than home equity loans. Borrowers with lower credit scores. Rates can exceed 20%.
I'm going to be honest with you here. Using credit cards for major renovations is usually a bad idea.
But there are specific scenarios where it makes sense. Small finishing touches, $500-$3,000. You have a 0% introductory APR offer for 12-18 months. You can pay it off completely before the intro period ends. You're earning valuable rewards on purchases.
The Consumer Financial Protection Bureau's 2024 Credit Card Report accessed October 2025 found that homeowners who financed renovations primarily with credit cards paid an average of $4,200 more in interest compared to those who used home equity loans.
Sometimes the best loan is no loan.
Can wait and save for your renovation? You avoid interest costs entirely. Maintain your home equity cushion. Eliminate foreclosure risk.
Set aside $1,000/month in a high-yield savings account. Earning 4.5%, average rate in October 2025 according to Bankrate.com accessed October 2025. After 12 months you'd have $12,270 saved including interest. After 24 months, $25,100 saved. After 36 months, $38,500 saved.
Compare that to borrowing $35,000 at 8.5% over 10 years. You'd pay $9,600 in interest. Saving first means you keep that $9,600.
The trade-off? Waiting years for your renovation.
This is what this means for you. When used wisely, home equity loans can be a great way to pay for renovations.
The most important thing is to make sure that the financing structure fits your schedule. Taking out loans carefully and only as much as you can afford. Focusing on changes that really add value instead of just what you like.
Before you get too excited about a renovation plan, figure out how much equity you really have. The math is easy. Get the current value of your home. Depending on your credit score, multiply by 0.85 or 0.90. Then take away the mortgage you already have. That's how much money you can realistically borrow.
Plan for the unexpected in your budget. Add 20% to the quotes from contractors. Don't forget that closing costs will add 2% to 6% to the amount of money you need to borrow.
You should feel good about your monthly payment. Not too much stress. Even if something unexpected happens to your income or the costs of running your home.
Think about more than just getting the loan, though. Think about what will happen if rates go up or down. If the value of your home goes down. If you have to sell sooner than you thought.
Let me break this whole guide down into steps you can take right now.
This is how you should think of it. You aren't just borrowing money. You're making a smart choice about how much your home is worth. The comfort of your family. Your future with money.
Take your time and do it right.
AmeriSave has competitive rates on home equity loans and a simple application process if you want to look into your options. It usually takes 3 to 4 weeks from the time you apply until you get the money.
No matter what you choose, make sure the renovation meets your real needs. And it fits well within your budget.
Federal Reserve. (2024). Survey of Consumer Finances. Retrieved October 2025 from https://www.federalreserve.gov/econres/scfindex.htm
Joint Center for Housing Studies, Harvard University. (2024). Homeowner Improvement Spending Data. Retrieved October 2025 from https://www.jchs.harvard.edu/
Freddie Mac. (2025). Primary Mortgage Market Survey. Retrieved October 2025 from https://www.freddiemac.com/pmms
Consumer Financial Protection Bureau. (2024). Home Equity Report. Retrieved October 2025 from https://www.consumerfinance.gov/
Federal Reserve Bank of St. Louis. (2025). Federal Reserve Economic Data (FRED). Retrieved October 2025 from https://fred.stlouisfed.org/
Fannie Mae. (2025). Economic & Strategic Research. Retrieved October 2025 from https://www.fanniemae.com/research-and-insights
Internal Revenue Service. (2025). Publication 936: Home Mortgage Interest Deduction. Retrieved October 2025 from https://www.irs.gov/publications/p936
Mortgage Bankers Association. (2025). National Delinquency Survey. Retrieved October 2025 from https://www.mba.org/news-and-research
National Association of Realtors. (2025). Remodeling Impact Report. Retrieved October 2025 from https://www.nar.realtor/
HomeAdvisor. (2025). True Cost Report. Retrieved October 2025 from https://www.homeadvisor.com/
Federal Reserve. (2025). G.19 Consumer Credit Report. Retrieved October 2025 from https://www.federalreserve.gov/releases/g19/
CoreLogic. (2025). Loan Performance Insights. Retrieved October 2025 from https://www.corelogic.com/
Experian. (2025). Consumer Credit Review. Retrieved October 2025 from https://www.experian.com/
FICO. (2025). Credit Score Research. Retrieved October 2025 from https://www.myfico.com/
Bankrate.com. (2025). Savings Account Rates. Retrieved October 2025 from https://www.bankrate.com/
Yes, but there are some important rules that you need to follow. To get a standard home equity loan, lenders usually want you to live in the home as your main residence. If you're fixing up a rental property or investment property, you'll usually need a cash-out refinance or an investment property loan that is made just for properties that aren't owned by the owner.
These loans for investment properties have stricter rules. A credit score of at least 720 is usually needed. Lower loan-to-value ratios, with a maximum of 75% instead of 85–90%. Fannie Mae's Selling Guide, which was last updated in October 2025, says that interest rates on second homes are usually 0.5% to 1.5% higher than rates on primary residences.
Some investors get around this by taking out a home equity loan on their main home. Then they use that money to fix up their rental property. You can spend the money from a home equity loan however you want. As long as your main home is the collateral for the loan and you meet all the requirements.
From application to funding, the average time is 2 to 6 weeks. This can be very different from one lender to the next.
The first week is for submitting applications and gathering initial documents. Pay stubs, W-2 forms, bank statements, and homeowners insurance. The lender tells you to get your home appraised. This is the most important step that often takes longer than expected.
The home appraisal is finished and reviewed in weeks 2 and 3. This is where things can get stuck. If the appraiser is busy or your property has special features that need more research, it could take an extra week or two.
In weeks 3 and 4, underwriting looks over your whole application. Checking to see if you have a job. Going over all the requirements. They might ask for more paperwork here.
Week 4–5 finishes getting final approval and getting ready to close. The title search is done. Documents for closing are ready.
Week 5–6 takes care of closing. You sign papers. Money goes into your account, usually within 2–3 business days of closing.
Most home equity loans at AmeriSave take 3 to 4 weeks, thanks to our streamlined process. But it really depends on how quickly you send in the paperwork. And if there are any problems with the appraisal or underwriting.
Want to get things done faster? Before you talk to contractors, get pre-approved. That way, you can keep track of your budget from the start.
This is a real worry. People don't think it happens as often as it does.
If your home is worth less than you thought, it has a direct effect on how much money you can borrow.
You thought your house was worth $400,000. You have to pay $150,000. So you thought you could get a $210,000 home equity loan with a 90% LTV minus what you owe. Instead, the appraisal says it's worth $350,000.
A new calculation shows that the maximum combined loan balance is $315,000. You can borrow up to $165,000 for a home equity loan if you already have a mortgage of $315,000. That's $45,000 less than what you thought.
At that point, you could cut back on the renovations to fit the smaller loan amount. Using savings or a personal loan to make up the difference. If you have strong comparable sales data that shows higher values, you can challenge the appraisal. Waiting 6 to 12 months, hoping values go up, and then applying again. Picking a different way to pay for the gap, like a personal loan.
CoreLogic's Loan Performance Insights, which were available in October 2025, say that about 9% of home appraisals in 2024 were lower than what the homeowners expected. Usually 5 to 15 percent less than what was thought.
Yes, for sure. When you sell your home, you have to pay off the home equity loan in full. Just like your first mortgage.
This is how it works at the end. The money you get from selling your home goes toward paying off all the liens on it. In order of importance. The first mortgage gets paid first. Next, your home equity loan. Then any other liens that have been recorded. The money you make from the sale is what you have left over after paying off all your debts.
You sell your home for $425,000, for instance. You still owe $180,000 on your first mortgage and $60,000 on your home equity loan. The closing costs are $25,000, which includes title insurance and agent commissions.
The sale price is $425,000. After paying off the first mortgage, the home equity loan, and the closing costs, you get $160,000.
At closing, the title company takes care of all of this on its own. You don't have to worry about paying off the loans yourself.
The most important thing to remember is that these loans lower the amount of money you make from the sale.
Possibly. You really need to talk to a tax expert at this point. After the Tax Cuts and Jobs Act of 2017, the rules became more difficult.
You can deduct the interest on home equity loans if you use the money from the loan to "buy, build, or substantially improve" the home that secures the loan, according to IRS Publication 936, which you can read in October 2025. But there are some limits.
Your mortgage and home equity loan can't add up to more than $750,000. If you are married and filing separately, you owe $375,000. To be able to take the deduction.
You borrowed $60,000 to remodel your kitchen, which makes your home much better. You should be able to deduct that interest. You borrowed $60,000 and spent $40,000 on the kitchen and $20,000 to pay off credit cards? You could only deduct the interest on the $40,000.
"Substantially improve" means making changes to your home that make it worth more. Make it last longer. Or change it to fit new needs. The IRS says that this includes adding rooms, building new bathrooms, decks, kitchens, roofs, and HVAC systems, as well as making upgrades that save energy.
Most of the time, regular maintenance and repairs don't count.
This is what everyone wants to know. To be honest, there isn't a perfect answer.
There are three things that matter. How badly you need to fix things up. What you think interest rates will do. And what will happen to the value of your home while you wait?
According to Fannie Mae's Economic & Strategic Research Group forecast from October 2025, economists think that mortgage rates will slowly go down until 2026. It could drop to 6.5–7% by the end of 2026. Home equity loan rates are usually 1 to 2 percentage points higher than mortgage rates.
But here's something no one tells you. Waiting also has costs.
You need a new roof. Wait a year for rates to go down by 1%. But your roof leaks a lot, and the water damage costs $15,000? You would be better off if you had just borrowed at the higher rate.
When I work with our teams, I always think about the cost of the opportunity. If the renovation makes your life much better or stops your home from getting worse, the urgency might be more important than the rate.
And you won't be stuck there forever. After you close on your home equity loan, the rates go down a lot? You can get a lower rate by refinancing it.
Your credit score will change in a few ways if you take out a home equity loan. In the short term, it can be both good and bad. But it could be very good in the long run if handled well.
When you take out a home equity loan, your credit score usually drops by 10 to 25 points in the first 3 to 6 months. This happens because the credit check caused a hard inquiry, which lowered your score by 5 to 10 points. A new debt on your credit report can lower your score by 5 to 10 points. Credit usage may go up, which could cause a 5 to 10 point drop. The average age of accounts goes down a little, but it doesn't have much of an effect.
Experian's Consumer Credit Review from October 2025 says that the average person sees their credit score drop by 15 points for a short time after taking out a home equity loan.
If you make all of your payments on time, your score will likely go up by 20 to 40 points above what it was before the loan within 12 to 18 months. This happens because your payment history gets better, which makes up 35% of your credit score. A better mix of credit comes from having both an installment loan and credit cards. After 12 months, hard inquiries go away. The total amount of credit you can use goes up.
The most important thing is to always make your payments. FICO's credit score research from October 2025 says that a single late payment on a home equity loan for 30 days can lower your score by 60 to 110 points. And it will stay on your credit report for seven years.
This changes depending on where you are and how the market is doing. But I can tell you what the National Association of Realtors' 2025 Remodeling Impact Report says, which I got to see in October 2025. They ask real estate agents from all over the country which home improvements give the best return on investment.
Manufactured stone veneer is one of the best exterior projects for getting your money back, with a 94% return on investment. Replacing the garage door costs 102% of what it costs. Minor kitchen remodel with 72% of the cost covered. Vinyl for replacing windows with 68% of the cost recovered. 69% of the cost of adding wood to the deck was recovered.
Bathroom remodels in the middle range are part of interior projects, and they can get back 63% of their costs. Added a bathroom and got back 63% of the cost. Kitchen remodel was small, and 72% of the cost was covered. Basement remodel that paid for itself 64% of the time. Conversion of an attic bedroom with 61% of the cost recovered.
If you care about resale value, you should stay away from projects with the lowest return on investment, like adding a swimming pool, which only recovers 43% of its cost. Remodeling a home office and getting 52% of the cost back. Addition of a master suite with 39% of the cost covered. Bathroom remodel that costs 48% more than it does.
It's easy to see the pattern here. Projects that fix problems, improve function, or make the house look better are more likely to pay off than luxury upgrades or highly personalized additions.
Most home equity loans let you pay them off early without a fee. But not all of them. Before you sign anything, you should check with your lender to make sure this is true.
The Consumer Financial Protection Bureau says that lenders must clearly state any prepayment penalties in your loan documents by October 2025. But you have to read them. If you pay off the loan in the first 2 to 5 years, some lenders will charge you a prepayment penalty of 2 to 3% of the remaining balance.
There are no prepayment penalties on our home equity loans at AmeriSave. This means you can always pay extra toward the principal. Or pay off the whole loan early. No fees at all.
Even if there are no official penalties, make sure to ask your lender if they charge any fees for paying off the loan early. Some charge between $50 and $200 to process a full payment. Which isn't really a fine, but it still costs you money.
What does this mean? You took out a loan for $75,000 at 8.5% for 15 years. You pay $739 a month. You still owe about $59,000 after making regular payments for five years. You could pay off the loan with a $60,000 work bonus. And save about $29,000 in interest charges in the future.
This is the most frightening situation. That's why I tell people to be careful when they borrow money and to keep some money set aside for emergencies.
If you can't pay back a home equity loan, you could lose your home. Because the debt is secured by your home.
If you start missing payments, this is what will happen. If you are 30 days late, you will have to pay a late fee, which is usually $25 to $50. Reported to the credit bureaus. The credit score goes down by 60 to 110 points.
If you are 60 days late, you will have to pay more late fees. The lender calls and writes to you. The credit score drops even more, by a total of 80 to 150 points.
If you're 90 days late, the lender may speed up the loan and demand full payment right away. Depending on the laws of the state, the foreclosure process can start. Credit score hurt badly.
Most states start active foreclosure proceedings after 120 days of late payment. Costs and attorney fees added to your balance. It gets harder to make a deal.
The Mortgage Bankers Association says that the average time between the first missed payment and the end of the foreclosure process is 18 to 24 months. But this is very different from state to state.
If you're having trouble, call your lender right away. Before you miss a payment. Most have programs to help people in need. Forbearance is when you stop making payments for a short time. Or change the terms of the loan. Before foreclosure hurts your credit for good, think about selling your home. Look into credit counseling or debt consolidation through a HUD-approved agency. Don't ever ignore the problem. If you talk to lenders early, they are more likely to work with you.
Fact Checked