Home Improvement Loans

A few upgrades to your home require money saved. If you don’t have savings, you will need a home improvement loan.

As you upgrade your home, wise lending can pay off in the long run. Just ensure you can afford all the upgrading work in your home.

Why Improve a Home?

renovation loansA home is an important part of your life.

It is somewhere you want to enjoy your stay for a long time. Your home is subject to wear and tear after some time. No one would want a shelter in a pitiable state.

A stylish home renovated to the latest standards is beneficial. You make money out of it. There are sites which allow you to rent out space at home. So it’s not just about being in an appealing environment. You can actually make money by renovating.

However, these major renovations can be costly. It would be impossible to undertake such a colossal project without renovation loan. There are so many lending options in form of home improvement loans.

Home improvement loans can increase your property value. Use the loan comparison tool at Financer.com to compare 15 lenders offering loan for home renovations.

Various uses of a home improvement loan include;

  • Building an extension
  • Updating a bathroom
  • Plumbing repairs
  • Lawn upgrading
  • Electrical additions
  • Finishing

Unsecured Personal Loans for Home Improvement

A loan with no collateral has a major benefit. Your major asset will not be at risk of being sold in case of defaulting. A fixed rate loan rate would be a better option. Home improvement loan rates that don’t fluctuate allow more flexible payment terms.

The changes to be made in a home obviously need to come from a source. You may not have substantial savings set aside. However, you can still save and renovate your home when you have the money. This will require great patience.

If you can’t wait, then unsecured personal loans can be of help. Of course, you also need to be aware of home improvement loan rate. Ensure you can afford these.

Home Improvement Loan Requirements

A lender will most likely want to know the nature and scope of the project. You need to have at least one preferred estimate. If you plan to construct, provide details on each stage and costs. The more details you provide the better.

Of course a renovation would take less time compared to a construction. Explain to your lender what exactly you plan to do on the improvement project.

Home Improvement Disbursements

The schedule payments of a renovation loan should be agreed by you and the lender. The scope of work will determine the disbursement procedure. For smaller projects a 4 step payment schedule is sufficient. The lender will release 30 percent of the loan.

If you are satisfied with the project 10 percent of the loan is released. For complex projects, there may be five to seven disbursements.

Types of Loan

  1. Personal loan
  2. Installment loan
  3. Credit Card Debt

There are some owners who will use their home’s equity to fund their home improvement project. If you don’t feel comfortable going down the route take an installment loan.

An installment loan gives you a lengthy repayment period. You get to enjoy smaller monthly payments. However, it is good to have extra sources of cash. This helps you pay more than monthly requirement. It is a good trick of paying up faster.

How to Choose a Suitable Lender

You will need to decide first on the type of home improvement loan. Shop around for the best rates. A lender offering renovation loan will often consider various factors.

Your credit history is often the first factor to consider. You need to prove that you can repay the loan. A credit history will indicate any past debts. Your promptness in past repayments will also be considered.

Some online lenders offer you a renovation loan even with bad credit. Use the calculator here to compare 15 lenders. You will find various funding options. However, your interest rate would be on the higher side.

Various Lending Options For your Home Improvement Project

You badly need to fix up your home. Lack of funds may make such a project appear as a dream. If you cannot use your home as a home equity loan, try HELOC. A lender may also accept application through FHA or HUD platform.

Home improvement grant is also another option. The grant is eligible to people who are 62 and older. There are also special programs where poor families benefit.

Lenders of the year

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