ShareThisLenders Make Home Improvement Affordable
You've finally decided to embark on that major home improvement project, and now you're thinking about loans and lenders. Perhaps you're satisfied with your current mortgage and you're not interested in taking out a refi loan. Now what?
Today's Lenders Offer Refi Options
There are other options out there from the lenders. Many of them require you to take stock of the scope of your project, the amount of money you'll need in a home improvement loan, and the estimated valuation of your home following the project.
It helps to survey the lenders landscape carefully once you've established your budget. Many lenders offer home improvement loans at attractive rates to people with solid equity and good credit.
If your equity is low, you might look into a refi on your mortgage or seek an unsecured loan if your project is small in scale (say $10,000 or less). Lenders set higher interest rates for these home improvement loans.
Lines of Credit and Government Assistance
Home equity loans are like second mortgages in that they free up cash. You can borrow up to 80 percent of current appraised valuation, less your outstanding mortgage. Lenders won't assess interest until you withdraw cash from the account, which you can do gradually over the course of the project.
Look into FHA and HUD-assisted programs. HUD's Section 203(k) program works with selected lenders in providing property rehabilitation loans. If you're purchasing a home that needs substantial work, there are also Fannie Mae HomeStyle Renovation Mortgages where you can borrow against the anticipated value of the improved property.
