Whether you are a homeowner considering a home renovation project or a contractor looking to offer financing to your customers, there is more than one way to finance a home remodel. The loan option that best fits your situation will depend on a variety of factors, including credit, financial position, the amount you are planning to borrow, and the project’s projected ROI.
Financing Options for Home Improvements
Ideally, homeowners should save up the funds for a home improvement project before applying for financing. However, that is not always possible or practical. In that case, homeowners can turn to home remodeling financing companies.
Some common financing options include personal loans, home equity loans, HELOCs, FHA 203(k) loans and credit cards. Each offers different advantages and disadvantages based on your creditworthiness, the scale of your renovation project and — if it is secured by your home — whether you choose a fixed or revolving home equity line of credit.
For instance, a home equity loan is ideal for one-time expenditures that add value to your home, while a HELOC awards you with a revolving line of credit. Credit cards, on the other hand, have variable interest rates and may require you to pay the full balance by the end of an introductory offer that can last up to 21 months.
A professional loan advisor can help you navigate the many home remodel financing options and find the right solution to fit your financial profile. Contact a RenoFi home loan expert today to discuss your options.