HOME DEPOT/ Renovations

[op2mystic1]

Some of us have the money for rehabbing and renovations while others don't.  Has anyone here took advantage of Home Depot's Home Improvement loans? I think you can take them up to $30,000 and if you have good credit you can get terms of as low as 7.99% an extend outwards to 5 years (with 6 months no interest)

What are some people's experience who have used Home Depot?

Of course there are various factors involved here but what amount of money do you all look to use while renovating multi-family apartment buildings.

[Rich_in_CT]

What are their terms?  Can it only be used for owner occ or can they be used by a company for investment properties?

[op2mystic1]

They've said or asked nothing about whether for a company or not or stricly owner occ

So you can get upwards of $30,000, for the first 60 months you incur no interest so loan may be paid in just pricipal. After 60 day you incur either 7.99 9.99 and upwards depending on your credit score.  From there can decide or get approval for 3 year loan, 4 year etc.

[Rich_in_CT]

Damn, if they can do the loan quick it might be a good way to borrow vs all hard money at MUCH higher rates.

[op2mystic1]

You can get approved on the spot and have a 6 month limit to use the funds.

[DannyTheGreat]

No interest for 60 months or 60 days?

I'd also imagine their are prepayment penalties before that 60 something date. No one loans money for free.

Do you get the 30k all at once to disperse as your discretion or does it work in draws?

Is there a no-payment period or do the bills start coming immediately?

[op2mystic1]

Sorry first 6 months are interest free, no pre-payment penalty, given the $30,000 or whatever amount you qualify for then (of course for use at  Home Depot). Its basically a line of credit with them.

[DannyTheGreat]

Not a bad idea for buying little stuff. I wouldn't put lumber, drywall, shingles, insulation, etc. on the LOC. I suppose this doesn't differ from a credit card with no interest for 6 months @ 8% with a 30k limit. Certainly something to consider for the loyal customers.

One last question: Is this a revolving LOC where as you pay down some principal and then able to borrow that money back again provided it's under the 30k limit?

[op2mystic1]

Believe they say you have that 6 month time limit where you are incurring no interest to charge purchases up to your limit.

[DannyTheGreat]

Right, but then as you pay back the principal through the payments, can you re-borrow the principal you've paid back?

Such as, after 18 months of payments and I've paid down the principal by 5k leaving me with a remaining debt of 25k, can I then go to Home Depot and run up 5k more to bring my total debt back up to 30k?

[henryinma]

Sounds like you probably could. And another FYI, Lowes also does the same thing. The 6 months thing is considered a project and you can start up another project as soon as you charge up another $1k worth of goods. It'll help, but it's usually the labor that costs more than the materials.

Of course you could just write checks for labor from other credit cards. Basically there shouldn't be a reason to use hard money unless you have bad credit, there's lots of other ways to get money without resorting to those types of rates.

[Land Baron]

This is probably similar to Lowe's "Project Card".  I believe this is the way it works:

With the Lowe's program, you open a "Project Window" with an initial purchase of $1,000 or more.  The Project Window stays open for 6 months, and any additional purchases within that 6 month window do not require payments and do not acrue interest.  Once the 6 months window ends, you begin making payments on those purchases.

I don't believe there are prepayment penalties.  So, I can see how this would be good for rehab projects.  Use the "free" money during a rehab, then pay it off when refinancing the home.

The Golden Rule is to use someone elses money, right?  6 months of free money sounds good!