2006-07-07 13:30:05 · 6 answers · asked by serenity 1 in Business & Finance ➔ Small Business
It depends where you go for the loan. A reputable bank would give you the best rate, but they may want $100K equity. On the other hand, you could go to a loan specialist, who would charge a higher interest rate, but only demand $50K equity or less. Some places would make an unsecured loan, but charge an extremely high rate. It all depends on the rate you're willing to pay.
Most important thing - have a strong business model and three year plan to show any lender. They will insist on seeing how you'll run the business and ensure it can generate cash to pay them back.
2006-07-07 13:37:54 · answer #1 · answered by Anonymous · 3⤊ 1⤋
I think you are asking two different things. A home loan (heloc, or 1st mortgage) is going to be secured by your property, and nothing else. If you have $100k in equity, you can get a $100k loan. I'm a mortgage banker, and your dreams and aspirations of being a small business owners means little when an underwriter is looking at the file. I would look at SBA.gov, small business administration website for info on grants. American Express I think has a decent small business program as well. But getting a residential loan is based off of your property's value, and your ability to pay it back in today's dollars, not future earnings. If you have a great idea, you can also look into an angel investor or VC type arrangement. Whats your business, you have me intrigued now?
2006-07-07 13:44:33 · answer #2 · answered by futureislandowner 1 · 0⤊ 0⤋
Never use your home to secure your business loan.
See if your state has a program that can help you get a loan without putting up your own security.
2006-07-07 13:35:10 · answer #3 · answered by god1oak 5 · 0⤊ 0⤋
Try SBA (Small Business Association) loans, there may be a chance you can get a loan without using your home as collateral.
2006-07-07 15:34:50 · answer #4 · answered by nandnonjune10 2 · 0⤊ 0⤋
Probably $120k with most lenders.
This is a TERRIBLE idea though. If the business fails, you could lose your home!
Now, if you have several rental properties to put up as collateral, it might be a better idea. At least you won't lose your home, and your tentants would be protected by their leases.
2006-07-07 13:38:10 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋
call freedom loan the guy to ask is Joe George his number is 1-714-596-1710
He will be able to help you out alot and give the right direction
If Your credit is good you might not need to use your home
2006-07-07 13:41:06 · answer #6 · answered by jmatt_inc 3 · 0⤊ 0⤋
I think it would be worth your time to buy the new success from home magazine featuring world leadership group or go check out the website before you think about investing hundreds of thousands on a new business
charliexiong@sbcglobal.net
2006-07-07 17:01:24 · answer #7 · answered by Anonymous · 0⤊ 0⤋