Most homeowners may need to face a financial crunch while embarking on new constructions and therefore might not be able to complete their homes to the perfect shape they wished. However, home improvements are always possible at any stage and with a proper planning, there are some proven ways in which you can fund the improvements intended.
Whether it is kitchen renovation, adding a deck and a swimming pool, replacing fashioned fixtures, extend the building or updating of the existing heating system, every homeowner might have a list of things to do. In such cases, you can choose any one or many of the funding options listed below to see that your dreams are realized.
There are companies that renovate homes waiting for sale and wait till the deals are completed to claim their money back. If selling your house is your plan, then you might think of this option.
Loosely speaking any of the loans for remodeling your home, be it a kitchen, a new bathroom or adding a swimming pool and deck can be called home improvement loans. Below are various ways to consider. The obvious place could be a bank such as Bank of America. Since most banks probably have an office where you live then you might start there. However, it is a smart idea to do some due diligence and check with other types of lenders or even brokers. Lending Tree is another popular option. And then there is Lyon Financial who specializes in swimming pool and home improvement loans. They have reputation of working for you and finding the best loan package that benefits you. Whatever you do, you should check with these and a few others to compare which sounds obvious, but sometimes a gentle reminder of the obvious is good!
Mortgage Loans: In case you have an existing mortgage, you might arrange to get it refinanced or altered to include the additional funding needed. However, in this regard you need to consider this. If you are going to keep paying off for a funding for painting job for instance over thirty years, it makes little sense since within this payback period you might as well be needed to paint your house probably four to five times. Therefore, make use of this provision prudently as and how it is needed.
Credit facility on Home Equity: if you have a satisfactory kind of first mortgage already, it is a good option to go for home equity line of credit. These are arrangements where you draw as much money as you would need and payback in your own comfortable speed as long as the minimum monthly instalment is honoured. In most cases, equity lines are for ten years which can also be renewed after sometime. One down side is that if you are unable to pay back, you might end up losing your home. The advantage is that you can get the scheme customized for your situation.
Home Equity Loans: These are fixed kind of credit arrangements wherein the amount you borrow as well as the amount you pay back are fixed. You can get the payback period lengthened or shortened as per your needs.
Borrowing from 401 (K): There are several kinds of 401 (K) programs that facilitate borrowing from your account and paying it back over five years. One down side to this is that if you leave your job at any point, the balance will become due immediately.
Federal Housing Administration 203k loan: You may use this option in case you have a lot of repairs to be carried out. One disadvantage is that you are required to meet out the mortgage insurance as long as the loan period extends. For inexpensive repairs, a streamlined kind of 203k program is available which you might consider as well.
Credit Cards: In case you have low budget renovation projects, you can as well cover them on your credit cards. By using your credit card to purchase materials, you might be able to get reward points which are an additional advantage for you.