Home Improvement Loans
You’re Minutes Away from Getting Your Home Improvement Loan Offers
Get your personalized home improvement loan offers with the best lenders in under 2 minutes. Submit your loan inquiry and let us provide you with the best rate. Don’t delay finishing your home improvement project for financial reasons.
Our process is simple:
- Create your account
- Fill in Your Information: This form is short and sweet – but detailed! We’ve worked on trying to get the minimum information necessary for you to receive an offer.
- View Your Loan and Get Your Loan Terms: Once you’ve completed these steps above, we can automatically make a decision on your loan and let you know immediately how much you are qualified for and the terms of your loan.
I want to see if I qualify (with no impact to my credit).
I am ready to apply for my loan.
Why Home Improvement Loans Are a Good Idea
Your home is your best investment. By keeping it in good shape and in style, your investment is likely to grow. Keeping your home market-ready is also a good strategy to allow you to take up opportunities that may require selling your home.
Probably the best reason to get a home improvement loan and do that upgrade or remodel is that you have to live there. No one wants to live in a substandard home when things like kitchens and bathrooms can be repaired or replaced with the help of a home improvement loan.
Borrowing money isn’t always a good idea as it increases your debt. But borrowing money to improve your home is a great idea if it will increase your net worth. It is usually not possible to immediately raise the value of your home by more than you are borrowing to make the home improvement. But if you plan to be in your home for a while, or, if you are making an improvement that will increase the sale price of a home you are about to list, then a home improvement loan is a great idea.
There are several types of home improvement loans. Right off the bat, everyone thinks about second mortgages and home equity lines of credit. While they may have the best interest rates, you can only borrow against the equity in your home. They also have minimum amounts to borrow. You might not need $25,000 for your home improvement project. Credit card companies often have introductory or special low- or zero-interest promotions. There are also government FHA Title 1 and FHA 203(k) loans but they have various limitations.
Loans Requiring the Home as Collateral
- If you have the equity, a refinance of your mortgage with a cash out option has high closing costs since it is based on the entire amount of the loan. A cash out refinance of your mortgage will start your loan over again. The new mortgage balance will be the existing balance plus the amount you cash out. There are other types of home improvement loans that may be the best option for you.
- A second mortgage is another mortgage in addition to your first one. So, the payment will be an additional amount to what you are paying now. This loan is disbursed as one lump sum so you need to budget accordingly. The origination fees can be high. A home improvement loan would be a better option.
- A home equity line of credit is like a credit card but with your home as collateral. The rates can be higher than second mortgages and are variable. There can also be early repayment penalties for these.
- FHA loans limit what you can do. For example, adding something to your home that will increase its value is not allowed with one of these loans. You must need renovations that cost at least $5000. They also have maximum amounts you can borrow regardless of how high your income is or how much your home is worth. The FHA 203(k) loan can only be used for older homes or fixer-uppers. And all FHA loans have mortgage insurance added to them.
Home Improvement Loans Are a Better Option
- Home improvement loans are quicker to get as there is no need to schedule an appraisal. This is really helpful if the repair on the home is a result of an emergency.
- These loans only require verification of income.
- They have lower closing fees.
- Since you are not using your home as collateral, you can keep paying it off monthly even if you sell your house and buy another one. You may choose to use proceeds from the sale of your home to pay off the home improvement loan but it will not be required.
- Home improvement loans are also better than using credit cards with special low-interest financing. These credit card options are only good for a limited time. If you don’t pay them off in that amount of time, then your new interest rate may be quite high. This could start you on a debt cycle that will take a long time to pay off. Your repairs may also cost more than you can charge to a credit card.
- Home improvement loans would have a fixed interest rate and a fixed monthly payment.
- Home improvement loans can be used for a luxury item that increases your home value such as an outdoor fireplace or a home theater. FHA Title 1 loans can only be used for specific things that are necessary parts of a house such as roofing, plumbing, etc.
- Home improvement loans are better if saving up is going to take too long. You can put a certain amount away each month until you get the amount you need or you can borrow the amount you need and pay a certain amount back each month. You have to pay interest on a loan but you get the money upfront to get the home improvement work done. You won’t have to live with whatever it is that needs to be repaired or upgraded until you save up enough.
TGUC Financial Can Help You Get a Home Improvement Loan
We have offers for homeowners across the credit spectrum. We can help you:
- If your credit score is low
- If you don’t have equity in your home
- If you need the funds quickly
- If you need more time to pay it off than with an introductory rate on a credit card
- If you want to add a luxury item such as a hot tub or home theater
Our home improvement loans are the best options for you. Contact TGUC Financial today to get started.