How Great Would It Be to Double Your Home's Square Footage?

Without Moving Out!

Yes, without moving out, budgeting for additional rental fees for a year while hoping your contractor does what they say they will do WHEN they say it will get done.

There is stress involved when considering the traditional way of doing Second Story remodels and we figured, "Why not do it without the stress, worry, and risk of losing your time, personal belongings, and lost funds on additional and unnecessary fees?

How Great Would It Be to Double Your Home's Square Footage?

Without Moving Out!

Yes, without moving out, budgeting for additional rental fees for a year while hoping your contractor does what they say they will do WHEN they say it will get done.

There is stress involved when considering the traditional way of doing Second Story remodels and we figured, "Why not do it without the stress, worry, and risk of losing your time, personal belongings, and lost funds on additional and unnecessary fees?

What Are Others Saying, currently?

Traditionally, second-story additions are intense and disrupting projects: for both the builder and the homeowners. The disruption alone could be enough to deter a family from proceeding with an addition, but that’s AnotherStory’s entire selling point: a second story without disruption.

Traditionally, second-story additions are intense and disrupting projects: for both the builder and the homeowners. The disruption alone could be enough to deter a family from proceeding with an addition, but that’s AnotherStory’s entire selling point: a second story without disruption.

What

are the benefits of

adding a story?

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Retain open space

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Improve curb appeal

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Larger home @ lower tax base

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More natural light

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Increased energy efficiency

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Increased value

Why

would you choose AnotherStory?

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No moving required

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No short term renting

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No disruption to commutes

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Dustless renovation*

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Privacy protected

Image

Less risk to possessions

What

are the benefits of

adding a story?

Image

Retain open space

Image

Improve curb appeal

Image

Larger home @ lower tax base

Image

More natural light

Image

Increased energy efficiency

Image

Increased value

Why

would you choose AnotherStory?

Image

No moving required

Image

No short term renting

Image

No disruption to commutes

Image

Dustless renovation*

Image

Privacy protected

Image

Less risk to possessions

How

Patented Technology

We build your second story without breaching the first

While you live uninterrupted and dust-free until stair installation

Stairs are installed and cleanup occurs at the end of the process

View Our Blogs...

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HELOCs For Home Additions: What Every Homeowner Needs To Know

October 05, 20234 min read

“Don't out grow your space, add to it.” - Benjamin Stout, founder Another Story

HELOCS For Home Additions: What Every Home Owner Needs To Know

Adding a second story to your home is an exciting venture. It not only provides additional space but also significantly increases the value of your property. However, the costs of adding a second story can be substantial, and homeowners often seek financial solutions that offer flexibility and affordability. Enter the Home Equity Line of Credit, commonly known as HELOC.

helocs for home additions, cost of home addition, adding a second story to a home

With that said, here are 8 reasons why you should start blogging on your website today! 👊

What is a HELOC?

A Home Equity Line of Credit (HELOC) is a type of loan that allows homeowners to borrow against the equity they've built up in their homes. Imagine having a credit card, but instead of a credit limit set by the card provider, it's determined by the value of your home and how much you owe on your mortgage. A HELOC is similar to a credit card in that it offers a revolving line of credit, meaning you can borrow up to a certain limit, repay the borrowed amount, and then borrow again.

Why is HELOC a Preferred Choice for Home Additions?

When considering the costs of adding a second story, a HELOC stands out for several reasons:

  1. Flexibility in Funding: Traditional loans disburse a lump sum, which might not always align with the phased expenses of a home addition project. With a HELOC, homeowners have the flexibility to draw funds as and when required during the project's progression. This pay-as-you-go approach ensures that you only borrow what you need, potentially saving on interest in the long run.

  2. Potential Tax Benefits: One of the standout advantages of using a HELOC for home improvements is the potential tax benefits. The interest paid on a HELOC may be tax-deductible if the funds are used for significant home improvements, such as adding a second story. This can provide homeowners with potential tax savings, further offsetting the costs of the home addition.

  3. Competitive Interest Rates: Generally, HELOCs come with competitive interest rates, especially when compared to credit cards or personal loans. Given that they're secured against your home, lenders often offer lower rates, which can translate to significant savings over the loan's duration.

  4. Preservation of Your Initial Mortgage Rate:

    One of the standout features of a HELOC is its non-disruptive nature concerning your primary mortgage. When homeowners secure a favorable mortgage rate, especially in the lower ranges like 3-4%, there's a natural hesitancy to tamper with it. A HELOC operates independently of your primary mortgage, meaning it doesn't refinance or replace it. Instead, it simply loans against the equity you've built in your home. This ensures that your hard-earned, low mortgage rate remains untouched and unaffected. For many homeowners, this preservation of the initial mortgage terms, while still accessing funds for home improvements, makes a HELOC an especially attractive option.

The Rising Popularity of Second Story Additions

With urban spaces becoming increasingly crowded and real estate prices soaring, homeowners are looking upward for expansion. Adding a second story is a strategic move. It not only doubles the living space but also offers a fresh aesthetic appeal to the property. The benefits are numerous:

  • Increased Property Value: A well-executed second story can significantly boost your home's market value. It's an investment that often offers substantial returns, especially in high-demand neighborhoods.

  • Avoiding Relocation Costs: Moving to a bigger house comes with its set of challenges and costs – from realtor fees to the emotional toll of leaving a familiar neighborhood. A second story addition allows homeowners to enjoy more space without uprooting their lives.

  • Customization: Adding a second story provides a blank canvas. Homeowners can design spaces that cater to their specific needs, be it an extra bedroom, a home office, or a recreational area.

Is HELOC Right for Your Second Story Addition?

While HELOC offers numerous advantages, it's essential to assess if it's the right fit for your financial situation. Remember, with a HELOC, your home acts as collateral. It's crucial to have a clear repayment plan in place.

Before opting for a HELOC, consider the following:

  • Equity in Home: You need sufficient equity in your home to qualify for a HELOC. Typically, lenders allow you to borrow up to 85% of your home's appraised value, minus the amount you owe on your mortgage.

  • Interest Rate Fluctuations: HELOCs usually come with variable interest rates, meaning they can fluctuate over time. Ensure you're comfortable with this aspect and consider potential rate hikes in your budgeting.

  • Closing Costs: Just like your primary mortgage, a HELOC might come with closing costs. It's essential to factor these into your overall budget.

The costs of adding a second story can be a significant investment, but with the right financial tool, it becomes much more manageable. A HELOC offers flexibility, potential tax benefits, and competitive interest rates, making it a popular choice for many homeowners embarking on a home addition journey.

At Another Story, we're committed to helping homeowners realize their dream spaces. If you're considering a second story and weighing your financial options, our team is here to guide and support you every step of the way.

HELOCHome additionsecond story expansion

Benjamin Stout

Ben Strout is an award-winning architect and a founding member of Another Story. He has been part of the teams that have created landmark destinations in Birmingham, including: Edgewood Creamery, Paramount Bar & Grill, and Brick & Tin to name just a few. Another Story is a trusted choice in Birmingham for architectural solutions and the only provider of a no-move option for second-story additions to homes. Ben Stout works with homeowners and contractors worldwide on using the Another Story method for second floor home additions.

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When

things happen for you

Day 1

Initial Phone Call

Week 1-4

Feasibility Study

Week 4-6

Programming

Week 6-10

Design Development

Week 8-12

Bidding / Value Engineering

Week 12-18

Financing

Week 18-22

Construction Documents / Permitting

Week 22-42

Construction (Dustless)

Week 42-44

Stair Installation

Week 45

Clean Up

Build Another Story without Moving

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In the first three weeks of being able to be in the added square footage, we were able to easily welcome out of town friends with 3 kids... Our kids have been able to retreat to their own spaces upstairs when they need some time away and read books together without having to be in the higher traffic areas of our home. We could not be more grateful for what the added space has added to our days as a family.

Image

In the first three weeks of being able to be in the added square footage, we were able to easily welcome out of town friends with 3 kids... Our kids have been able to retreat to their own spaces upstairs when they need some time away and read books together without having to be in the higher traffic areas of our home. We could not be more grateful for what the added space has added to our days as a family.

Image

Rachel Buie

Birmingham, AL

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Rachel Buie

Birmingham, AL

When

things happen for you

Day 1

Initial Phone Call

Week 1-4

Feasibility Study

Week 4-6

Programming

Week 6-10

Design Development

Week 8-12

Bidding / Value Engineering

Week 12-18

Financing

Week 18-22

Construction Documents / Permitting

Week 22-42

Construction (Dustless)

Week 42-44

Stair Installation

Week 45

Clean Up

Results will vary on a project by project basis. Some projects have been finished within 6 months, however all counties are different.

[This] team has more vision, imagination and problem solving ability than all five previous architects (combined) with whom we have done projects. Their design-build approach simplifies multiple meetings and miscommunications between a separate contractor and architect. The end result of our renovation is stunning.

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Sheri Spain Long

Birmingham, AL

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Sheri Spain Long

Birmingham, AL

Location

Homewood

Birmingham, AL

USA

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