Home equity loan on a condo

CapCenter's fixed-rate home equity loan is currently limited to one-unit, single-family homes used as a primary residence or second home. Condominiums aren't eligible for it.

That's not the end of the road. Your equity is still yours, and a loan consultant can walk through other ways to use it.

With a condo, you own your unit and share ownership of the common areas with other owners. The health of the whole community matters to a lender: the HOA's budget and reserves, how many units are owner-occupied, any lawsuits against the association and whether special assessments are coming.

That added layer of review is one reason some second-mortgage programs, including ours, don't include condos.

Your unit can be in great shape and still face hurdles if the association's finances are weak, so it helps to know where your community stands before you apply.

With a cash-out refinance, you replace your current mortgage with a larger one and take the difference in cash. CapCenter finances condos on first mortgages, so this may be open to you if your condo and its community qualify.

The catch is your rate. A cash-out refinance resets the rate on your whole balance. If your current rate is well below today's rates, weigh that cost carefully. CapCenter's cash-out refinances come with ZERO Closing Costs (restrictions apply).

• A home equity loan or line of credit from a lender that lends on condos
• A personal loan for a smaller or short-term need
• Saving for the project and starting later
• Splitting a big project into smaller phases

Ask your HOA for its budget, reserve study and any planned assessments. A large assessment coming up could change how much you want to borrow, or why. Also confirm what the master policy covers versus your own condo insurance, especially if you're borrowing for a renovation.

If you also own a single-family primary residence or second home, a CapCenter home equity loan on that property may be an option. Loan amounts run from $50,000 to $250,000.