Get a Home Improvement Loan in Three
Easy Steps
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What's the
Right Home Improvement Loan for You?
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FHA
FHA loans offer easier qualification and low
rates with government-backed security for
major home improvements.
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Dealer
Financing
Home improvement contractors often provide
financing with better rates and more
flexible terms through their suppliers. Some
of these home project loans are interest
free or may require no payments for many
months.
Get quotes from local
contractors
and ask about financing options.
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Loans for Senior Home Owners
No credit check or income
requirements for up to $625,000 in tax-free
money and you never make another mortgage
payment. You must be over 62 years of age.
Find out if you qualify at One Reverse
Mortgage.
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As a homeowner you have a responsibility to keep your home in good
repair. Things wear out over time, and available funds may not
comfortably cover the cost of repairing or replacing them. Perhaps
you're thinking about energy efficiency--keeping those upwardly
spiraling energy costs under control by installing replacement
windows or insulated siding.
Or maybe you simply want to restore
your once-proud home to her former beauty in places where time and
weather have taken their toll.
A home improvement loan can make a positive difference by preserving
your investment, saving you money on energy costs over time, or just
making a difference in the way you enjoy the comforts of home.
If you've been avoiding the benefits of home improvement because you
don't want to think about loan applications or you're worried about
debt, here are three simple and painless things to do to get the
ball rolling and make your "home, sweet home" happy again.
1. Plan: Decide what work you want done and get estimates. In all cases, get three or more firm
bids from
local home improvement contractors.
When evaluating a contractor's estimate, make sure you know all
costs involved such as installation, labor, overtime and
responsibility for overruns.
2. Check the Internet: There are innumerable websites covering
the
details of home improvement loans. They can explain legal
requirements state by state and let you know if you qualify for
a home improvement loan from the Federal Housing Administration.
FHA loans are particularly attractive in today's economy as no
equity is required for a single-family home, and you can borrow
up to $25,000.
3. Talk to your bank: Whether or not your bank turns out to
be the final lender, your banker can give you good advice about
your financial health and the application paperwork involved.
They can even guide you through the full process. This is the
time to ask all those technical loan questions: Can you tack the
loan onto your current first mortgage? Do you have enough equity
in the home to secure a home equity loan or home equity line of
credit? If you're over 62, can you qualify for a
reverse
mortgage as your source of financing?
Once you decide to go ahead with the work, be sure to insist on
an iron-clad contract. A well-qualified and motivated contractor is
a good ally. Not only can they help you decide exactly what work
needs to be done, they may be able to lead you safely through any
necessary paperwork for your home improvement loan application. |
