How to finance home repair and improvements with no money down.
With a stable and growing housing market, investing in your home is like putting money right back in the bank. And if done correctly these investments not only improve your quality of life but also the resale value of your home. The problem is many of us don’t believe we have the funds available to just throw at our homes. In reality, however, there are a lot more ways to finance home repair and improvements than just cash in hand.
How can I finance Home improvement?
Finding money to repair your home is as simple as picking the right financing option for you. Below we have compiled a list of a few home repair loans and their benefits.
Title I Property Improvement Loan
A few benefits include:
‘You do not have to live in any particular area to get one of these loans.
Seldom do you need any security for loans under $7,500 other than your signature on the note, and you don’t need a cosigner.
You do not have to disturb any mortgage or deed of trust you may have on your home.
To obtain a loan, you only need to own the property or have a long-term lease on it; fill out a loan application that shows you are a good credit risk; and execute a note agreeing to repay the loan.
In addition to repair, your loan can cover architectural and engineering costs, building permit fees, title examination costs, appraisal fees, and inspection fees.
You are not hampered by a lot of red tape. Usually only the lender has to approve your loan, and can give you an answer in a few days. When the work is finished, you will need to furnish the lender with a completion certificate.
You receive some protection from the wrong kind of dealer, because FHA requires that any dealer who arranges a loan for you must first be approved by the lender.’ more information at https://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/title/sfixhs
Refinance your mortgage.
This is the best option for homeowners who would benefit from refinancing anyway, perhaps with a lower interest rate, as long as they don’t spread the cost of the improvements over more years than the renovation will last. The average rate for a 30-year mortgage in the last week was 3.9 percent and the average rate for a 15-year mortgage was 3.1 percent, according to Freddie Mac’s Primary Mortgage Market Survey.
Home equity line of credit
This option allows you to utilize the money you’ve already invested into your home and works best when you plan to sell or need to repair something immediately.
FHA 203(k) Mortgages
These FHA-insured loans allow you to simultaneously refinance the first mortgage and combine it with the improvement costs into a new mortgage. They also base the loan on the value of a home after improvements, rather than before. Because your house is worth more, your equity and the amount you can borrow are both greater. And you can hire a contractor or do the work yourself. The downside is that loan limits vary by county and tend to be relatively low. The usual term is 30 years.
Which home repairs offer the most return?
Now that you know it’s possible to finance the home repairs and improvements you want, it’s time to decide which investments are right for you.
Although there are many projects that increase the value of your property, home maintenance improvements are the real sellers of the home (check out this blog post https://kproofing.com/newsidingsells/).
Meaning things like new gutters, siding replacement, and new roofs are what have the greatest instant ROI. But if you plan on living in your home for a while, investments such as replacing your windows can pay for themselves in as little as five years (check out our blog post on new windows here https://kproofing.com/new-windows-can-save-money/).
So what’s holding you back?
Whether you are looking for a roofing contractor, roofing specialist, new roof installation, window replacement, siding replacement or what have you. Call Louisville’s home improvement contractors K&P roofing, siding, and home improvement inc. and take a step towards the home of your dreams.
For more information on different financing options to repair your home, checkout these great articles or give us a call and one of our representatives can help point you in the right direction.