Home improvement loans come in many shapes and sizes, as do the needs of homeowners seeking to deal with a fixer-upper, add a new room, or update the look, feel, and functionality of their real estate property.
Unsecured loans do not require collateral or put you in jeopardy of losing your house to foreclosure. Meanwhile, contracts secured by the equity (if you have enough) in your property have more affordable payments. Then comes credit cards, rent-to-own arrangements, and retailer financing – each with unique pros and cons.
The critical approval criteria are a good credit score and sufficient income to cover your monthly payment along with your existing mortgage.
Articles on this Topic
Non-profit entities, property insurance companies, government agencies, and state and city rule-makers share one thing: they want to save lives endangered by fires and gas leaks in your home.
Sometimes, this concern translates into free smoke alarms and carbon monoxide detectors for low-income families, senior citizens, and people with hearing loss. Learn where to look and how to take advantage of various programs.
Financing an above-ground swimming pool becomes challenging when you have bad credit or no history on your consumer report.
Fortunately, you have three viable options to help you cool off during the hot summer. Personal loans, buy no pay later, and rent-to-own arrangements have unique pros and cons you should understand.
Paying fo rexpensive home repairs is never easy – unless you have piles of cash laying around.
Charities sometimes lend a helping hand to target groups such as the elderly or single mothers.
Government grants can sometime assist target groups such as the elderly and veterans.
Since a government grant represents free money that you do not have to repay, you owe it to yourself to see if you qualify before applying for a home improvement loan.
However, your choice of words matters.
Additional rooms or remodeled kitchens and baths increase your property value, while repairs restore essential functions. Government money is much easier to find for repairs than improvements, but every rule has exceptions.
Before taking out a home improvement loan to pay for a pricey roof replacement or repair, you might want to investigate the availability of free grants that reduce the amount you need to borrow.
You might qualify for one of the government programs designed to help low-income families cope with utility bills and weatherization improvements. A local company might fix your roof at no cost to you.
Reducing the amount of money borrowed is ideal for improving your chances of a home improvement loan approval. Lenders are more willing to say yes when the applicant can afford the monthly payment.
Window replacement grants from the government can reduce your home improvement costs significantly. Take advantage of incentives for low-income homeowners to upgrade to energy-efficient frames and panes.
Taking out a home improvement loan should be your last resort when you have a bad credit history and no equity in the property.
First, most lenders will decline your application. However, you can turn financial hardship into an advantage by tapping into free resources.
A personal loan can be the ideal way to finance improvements to the appliances in your home: refrigerator, stove, dishwasher, washer, dryer, etc.
Many people visit the retailer first and think about setting up monthly payments later, only to paint themselves into a corner. Why limit yourself to the one lender chosen by your appliance company?
Homeowners have unique considerations to weigh when deciding how to finance HVAC systems.
First, permanent equipment hooked into your ductwork is more expensive to install and remove than portable units.
Then, energy-efficient furnaces, air conditioners, and water heaters save money on gas and electricity over time: making monthly payments far more affordable.
When financing hardwood flooring and carpeting projects, homeowners have two main choices.
Tapping into funds from a lender upfront frees your to choose the contractor and supplier with the best price and service.
Relying on financing from the flooring company reduces choices, and opend the door for promotional rates – with a catch.
A home improvement loan approval could be the secret to getting appliances for free as the energy savings associated with upgrading from old inefficient refrigerators could be more than the purchase price.
The government follows a similar thought process when providing benefits to low-income families. In addition, agencies seek to help citizens while safeguarding the environment.
Why finance a big home improvement project like a new furnace, water heater, or air conditioning unit when government grants might provide you with a free system?
Most people qualify for weatherization assistance and perhaps discounts on remaining gas and electric bills – unless they meet strict criteria. Then, payment plans enable you to upgrade without hurting your cash flow as energy savings kick in.