Many, if not most of us, dream of owning a home of our own, but there are a lot of expenses associated with being a homeowner. Unlike renting a home, if something needs to be fixed or if you’d like to do some sort of home improvement project, the cost of this work is entirely your responsibility. There will be times when there are repairs that your home needs and that just can’t be put off any longer – but if you’re working with a tight budget or you don’t have the cash on hand at the moment, there are home improvement financing options that can help you to cover the cost of the work you need done.
There are loans available for home remodeling available from various sources which you can use to pay for a Philadelphia contractor to repair or renovate your home. These loans will invariably come with conditions attached, namely that the funds from these loans can only be used to pay for necessary home repairs or for home improvement projects which will increase the value of your home or property.
Home improvement financing loans can be used for projects including installing new plumbing, adding a room onto your home, building a deck, kitchen or bathroom remodeling or landscaping work, in addition to repairs and maintenance tasks. Regardless of the type of work that the loan is for, homeowners should keep in mind that home improvement loans are generally short term loans and that the interest rate of these loans will vary depending on the policies of the lender, the value of the home and the credit rating of the homeowner.
Sources of home improvement financing include private lenders like banks and credit unions as well as federal programs which provide loans for home maintenance and home improvement. To find out more about home improvement loans from banks and other traditional lenders, you can speak with a loan officer from these financial institutions. Any lender you speak with will want certain information, such as complete details for your home improvement project, an estimate of the total cost and quotes from your Philadelphia contractor – as well as the projected increase in the value of your home that the project is expected to produce.
Other options for financing a home improvement project include home equity loans or a HELOC (home equity line of credit), as well as a mortgage refinance or an unsecured personal loan. There are pros and cons to every type of home improvement financing and you’ll have to evaluate each in light of how it meets your own needs. Interest rate can vary widely, with unsecured loans typically having higher interest rates than secured loans which use the borrower’s home or other property as collateral.
If none of the above are home improvement financing options which appeal to you, there is one other avenue you may want to explore – your Philadelphia contractor may also offer financing for home remodeling and repair jobs. In some instances, the terms of these loans may actually be favorable to what your bank might offer; and in any case, it’s always worth inquiring about if you need financing for your upcoming home improvement project or repair job.