Home Improvement Financing
Despite the economic difficulties of the time, it can still be a good time for home improvement. Many people are deciding to ride out the remainder of the financial storm where they already live, and any improvements made to their property at this opportune time, will almost certainly pay high dividends when the economy begins to recover. Home improvement financing loans can be obtained at some pretty low interest rates at this time. With the economy still in disarray, contractor costs will likely be less than in times of higher demands for their services.
Home improvement financing
Home improvement isn’t cheap, and most people don’t have several thousand dollars sitting around for home improvement financing. There are several ways to finance a home improvement project. If you are reading this, there is a good chance that you have decided to perform the work yourself, which will save you money, but only if you practice careful planning. Whether you do the job yourself, or hire a contractor, you will still have to pay for the job.
Home improvement financing: Pay as you go
You can plan your home improvement project so that it can be done a little at a time, as the money is available. If this is the method you choose, you should plan the project carefully in segments matching the amount of funding as it comes available, and set a start and finish date. Do your homework and know exactly what material you will need, the cost of the material, and set up a plan, and a time frame for each part of the project.
Home improvement financing: Pay with credit cards
You can pay for the materials using a credit card. If you take this route, pay off the credit card bill in such a way that you will avoid late fees and other such onerous problems imposed by credit card companies.
Home improvement financing: Home improvement loans
If your credit is in good condition, your home mortgage payments up to date, and your equity in the home sufficient, you can probably get a home improvement loan without too much trouble. Shop around a little on this option. Credit unions are a good source. Large lumber and hardware chains sometimes offer home improvement credit cards with low to no interest. Doing your homework on this part of the project can pay huge dividends in the form of savings.
Home improvement loans: Government funding
FHA Title 1, HUD, and VA
If you meet certain criteria, you may be eligible for home improvement loans from one of these agencies:
FHA Title 1 home improvement loans make it possible for homeowners to get loans without equity backing up to $25,000.00. This includes the construction of buildings which are not residential in purpose. These loans extend to manufactured housing, and fire safety equipment, and may in some cases be available for long term renters.
HUD has a number of programs ranging from basic home improvement loans to “fixer upper” loans like their 203(k) program. It would take a separate article to just give a thumbnail description of the possibilities, so the best way to learn more is just follow the link above.
The VA will assist Vets in home buying, and there is an abundance of information available on their website. I am not sure how far into home improvement this extends, but I thought it should be included, especially with the numbers of young men and women involved in various conflicts throughout the world who will return, and are deserving of every benefit possible.
State and local governments
Some states and cities also offer incentives for home improvement, essentially paving the way for home improvement loans with financial institutions as well as special home improvement loans for local citizens. Your best bet for information is to search for state and local information for your area online, or call the state or local entity for details. These vary widely from one location to another.
The main lesson in home improvement financing is that like most other endeavors, good planning and doing your homework will produce the best results and the best bang for your buck.