Consumers Digest

i am buying my house on contract and need a home improvement loan, cannot use house as collateral?

im buying it from my cousin, and cannot use house for loan. credit score very low

Public Comments

1. What collateral? Your question is not clear -- you have no collateral in the house to support a loan period. Patch-up your credit and let the house appreciate -- then apply for a regular loan that can include some extra for improvements. In the mean time a little sweat equity can be earned. Landscaping, painting, repairing and cleaning can certainly add value and show pride of ownership when it comes time to refinance.