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On average, a major home improvement project can cost between $18,375 and $42,428. Even diligently saving money, it can take a while to finance the entire renovation. By securing a home improvement loan, you won’t have to wait months or years to afford your project. To help determine if this is the best option for you, below are answers to a few common questions about this type of financing. 

What to Know About Home Improvement Loans

What is a home improvement loan? 

This type of loan is earmarked to finance home repairs and remodels. Many homeowners opt for unsecured personal loans, which do not require borrowers to put down collateral or provide house titles to secure them. The money is paid back with interest in monthly installments. 

What are my loan options?

home improvementIn addition to unsecured personal loans, there are other financing options to explore. If this is the first home you’ve bought and you plan to live in it, you might be eligible for a federal Department of Housing and Urban Development loan. This is intended to cover the cost of fixing up your new space. You could also opt for a line of credit. You can withdraw funds as needed from the account up to a limit. Another option is a home equity loan where the equity in your house is used as collateral.

Are there any stipulations?

The terms of your home improvement loan may outline how the funds can be used. Most cover the cost of upgrades and repairs that improve the structural integrity of the property or increase the safety of occupants. This could include new roof installation and flooring work. You should discuss with your lender whether solely-aesthetic work is covered.

Should I still use money set aside?

If you choose to apply for outside financing, you should still consider using money you’ve saved for your home improvements. By combining the cash with a loan, you could get better interest rates.

 

Whether you use financing or savings for your home improvements, the licensed contractors at Chandler Roofing & Construction are ready to work on your project. Based in Red Wing, MN, their skilled team has more than 50 years of experience providing bathroom and kitchen remodeling, roof work, gutter installation that boosts the value of area properties. To schedule a consultation, call (651) 388-9415. Discover why you can trust these professionals with your project online and review their work on Facebook

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