The Benefits of a Home Improvement Loan
Borrowing money to put back into your home’s value is a fairly safe and easy investment. There are a number of ways to qualify for home improvement loans, and there are multiple ways to use that money to increase your home’s value for resale. Your first step is to contact a reliable mortgage company like FL Refinance and let an experienced and trusted agent help you determine the best course of action, as well as where to make those improvements. In the mean time, this article will point you in the right direction.
Here’s how to do it
There are a few ways to get your home improvement loan. The first is known as a HUD Title I. The Housing and Urban Development Department is a portion of the Federal Government and Title I loans are used specifically to make home improvements to a property, be it in the home, on the home, or in the yard. These loans are insured by the Federal Housing Administration but are financed by private lenders. These loans are beneficial in that they are easily acquired and take very little work to get the financing ball rolling.
HELOC (Home Equity Lines of Credit) are loans that use available equity in the home to secure a second mortgage. These loans take the remaining equity in your home without altering the first mortgage and are used to make home improvements, as clients can borrow, repay, and re-access the credit line.
Personal loans are another method for securing a home improvement loan, though they are typically smaller in dollar amount. However, you may only need minimal work done such as putting down new flooring or adding energy efficient appliances. But be warned; these loans often carry higher interest rates than your traditional home loan will and they are unsecured.
You have your money; now what?
If you could only remodel one room, ask any realtor which one to tackle and they will all tell you to do the kitchen. This is, hands’ down, the number one upgrade that offers the biggest return on your investment. In an article published by HGTV, readers are advised that if it isn’t in your budget to go all out with a full remodel, that you can do a good minimal remodel and still get a return. Change the paint on the walls and add new tile. They also advise you to paint a faux-wood finish onto your cabinets to give the look of cherry. Also, if you don’t already have them, get stainless steel appliances. Some buyers wont even consider a home if it doesn’t have upgraded appliances to meet the current trends, as silly as it sounds. The article also advises readers to put in a rolling island, if the space permits it.
Talk to an expert
Contact a mortgage specialist and inquire about starting the paperwork on your home improvement loan. If you are about to put your home on the market, an experienced agent will be able to help you, and guide you through the process.