Unless one knows how to finance home improvements, he may get in way over his head when he wants to build an atrium.
Pittsfield, MA -- (SBWIRE) -- 05/10/2013 -- Real-estate-yogi.com is here and ready to share its wisdom regarding this subject, such as:
- HUD Funds
- Contractor Loans
HUD Money for Home Improvement
The Department of Housing and Urban Development (HUD) offers the 203(k) loan as financing for your home improvements. This loan is designed for “fixer-upper” homes and consists of several steps, some of which are outlined here. The buyer must choose the house he wishes to fix up, go to the owner of it, and secure a sales contract. He must then contact a 203(k) lender and set up an appraisal of the work that needs to be done. If he qualifies, the loan will be drawn up with enough in it to cover all of the costs involved in fixing up the house.
Send Request For Home Improvement Loans For People With Bad Credit!
Home Improvement Grants
A home improvement grant is free money given to someone so they can make repairs or fix up anything that might not otherwise be attended to. They are an excellent source of money for home improvement and are provided by the federal government, states and communities. Generally, these grants are put to use by getting electrical systems up to code, installing insulation or storm windows, or replacing a septic system. The do not usually cover cosmetic repairs such as a fresh coat of paint.
Home Equity Line of Credit
Another place to find some home improvement money is through a home equity line of credit (HELOC). This is not a loan; it’s more like a giant credit card because one can make purchases with the money up to his limit. Check into home improvement loan interest rates to see how they compare to a HELOC. Undoubtedly, the HELOC will have a lower interest rate, as it is based on the equity in one’s home and one’s credit score. There is no rule about how the HELOC can be utilized; just remember that it may have to be paid back faster than a traditional loan.
Personal Contractor Loans
As a response to how to finance home improvements, look into a contractor loan. Many well-established contractors can offer to provide a personal loan to their customers. Depending on the contractor and the homeowner’s credit rating, the interest rate may vary. Any arrangement one makes with a contractor is a legally binding agreement and must b e honored as such.
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