Do you have some ideas on home improvements you’d like to make but don’t have the capital to make it happen? Don’t get discouraged—we know of some great options for financing home improvements. For instance, take a look at these five options for financing the home improvements you have in mind:
Energy saving financing
What kind of upgrades do you have in mind? If you’re planning on making some green home improvements to upgrade the quality of your life and home, you may very well qualify for a kind of financing geared towards the reduction of our carbon footprint.
Not only is this kind of financing helpful for the planet, but you may actually save money when making the upgrades that this kind of financing is designed for. PACE (Property Assessed Clean Energy California) financing is an option that may be perfect for installing solar panels or updating your doors with energy saving materials.
Get a home improvement loan
If you have a good credit score, then this may be the ideal option for you. Because individuals avoid using their home as collateral, and interest rate and approval have a lot to do with your credit, it could be the type of loan for people who need money fast.
If your financial situation is stable and you want to get those upgrades done fast, consider a home improvement loan. You can use this type of financing to update your home and make changes, whether you’re embarking on a major landscaping redesign or replacing the roof.
Use your credit card
Perhaps you only want to replace the tiles in your bathroom or update your kitchen backsplash. When the remodeling is minor, there’s no need to get a hefty loan to make improvements. Not only do you avoid having to pay high interest rates (if you pay on time), but you can even get some money back through cash back deals.
However, avoid using your credit card if you have a volatile financial situation, as it’s highly important to make payments on time with this kind of investment.
Get a HUD Title I Property Improvement Loan
This type of loan is a government loan and, while not everyone will qualify for it, it can be beneficial if you do. While it is a bit strict in what you can use the money for and you may not be able to do specific upgrades that you have in mind, it can be helpful if you bought a fixer-upper house and want to do some home improvements to make it more livable.
It’s not the ideal loan for everyone, but this loan definitely benefits those who aren’t trying to make their home look like Martha Stewart’s.
Get a home equity loan
What’s good about a home equity loan is that once you have a fixed interest rate, it’s locked in. You don’t have to worry about it fluctuating. It’s a helpful loan when you need to borrow money right away and have time to pay it off. However, one downside to this type of loan (also known as a second mortgage) is that your home is collateral and could be subject to foreclosure if you violate the terms of the loan.
In Conclusion
If you’ve been thinking of making upgrades to your home, both for the livability and the future resale value, these above-mentioned loans may be ideal for you. Each one offers both benefits and drawbacks, so consider your options carefully. You may want to consider speaking with a financial professional before making your decision or shopping around for numerous loans before deciding on one. As with any big decision with financial commitment, take your time before saying yes.