Pittsfield, MA -- (SBWIRE) -- 11/26/2013 -- When the roof begins to leak, the sinks to back up, and the steps to fall through, it’s time for some home improvements. However, if one’s credit score is low, finding the financing for them can be difficult. http://www.real-estate-yogi.com is here to offer some ideas about how to obtain home improvement loans with bad credit that can even help folks who have good credit.
Go Over Credit Reports
The first step someone whose credit is poor should take is obtaining a copy of his credit report from one of the three major reporting bureaus (Equifax, TransUnion, and Experian). Go over this report very carefully, looking for errors or unauthorized items. If there are any, dispute them. Document any proof one has of mistakes or fraudulent marks, then send copies of them to the reporting bureaus. After 60 days, the bureaus will send a letter with their finding, and if they remove any disputed items, it can improve a credit score immediately. This will increase one’s chances of approval for a home improvement loan. If the bureaus find for the claimants, there are lenders that will give a person with poor credit a loan to fix up his home, but only at a higher interest rate than those whose credit is good would pay.
Government Programs
If one cannot get a home improvement loan for bad credit through an area lender, the government may be able to help. The Department of Housing and Urban Development has several such programs, but the Federal Housing Administration’s Title 1 loan program is very popular also. This plan allows homeowners whose mortgage is insured by the FHA to take out a home improvement loan, regardless of their credit scores. HUD offers the 203(k) program, among others, which is its primary offering for the improvement of single family dwellings. Contact HUD for more information about the programs available to those with poor credit.
Other Suggestions
If one has tried to repair his credit by paying off a portion of his debt load, or has applied for help from the federal government plans to no effect, he may want to consider the following ideas to help him get the home improvement loan for bad credit he needs. See if a family member or close friend will co-sign a personal loan. This means that both names are on the loan, and that the co-signer will have to assume repayment of it should the primary borrower default (stop paying it himself). One could also borrow the needed amount from family or friends who are in a position to help, although this does not happen often.
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