Ruben Gurgov

Both loans deliver one lump sum repaid over time, but home equity borrowing uses the home as collateral; personal loans may not.
Personal loans often move faster with simpler approval, while home equity loans usually take longer because appraisals and property review are involved.
For renovations, home equity loans may offer lower interest, larger borrowing, and possible deductibility when funds substantially improve the home securing that loan.
Key tradeoff: if a home equity loan goes unpaid, the lender may repossess and sell the home to cover remaining loan balance.
Use a loan calculator, then compare lenders, repayment dates, finance charges, annual percentage rate, penalties, and missed-payment consequences before signing any agreement.

US Borrowers: Equity or Personal Loans

Slide 1 — The Real Pressure Point

Loan maturity is where deals break or reset, not during purchase or renovation.

Slide 2 — Early Exit Planning Wins

Smart investors design refinance or sale exits before the bridge loan even starts.

Slide 3 — Extension Is the Safety Valve

Extensions buy time, but usually come with higher rates and stricter lender conditions.

Slide 4 — Refinance Is the Main Escape Route

Most investors survive by rolling bridge debt into long-term or DSCR financing.

Slide 5 — Backup Capital Decides Survival

Liquidity reserves or secondary funding determine who survives tight maturity deadlines.