Home Improvement Loans

Home Improvement Loan Financing That Fits Your Budget

Flooring

Home improvement loans for any type of flooring project including hardwood, laminate, carpet, and others.

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Hardware Sheds

Home improvement loans for hardware sheds including pre-fabricated, wood, metal, and more.

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Heating & AC

Home improvement loans for Heating & AC projects including equipment and installation services.

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Home Improvement Loans

Home improvement loans for home repair projects including kitchen and bath remodels, HVAC work, foundation restoration, and more.

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Home Security

Home improvement loans for home security systems and accessories.

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Plumbing & HVAC

Home improvement loans for plumbing and HVAC projects including equipment replacement, sewage treatment, plumbing repair and more.

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Water Purification Systems

Home improvement loans for water purification systems and neccessary equipment and accessories.

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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. This allows you to take up opportunities that may need selling your home.
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. You can repair or replace kitchens and bathrooms with 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. Your home value may might not increase by the amount you are borrowing for the home improvement. But if you plan to be in your home for a while, then a home improvement loan is a great idea. If you are about to list a home for sale, assess whether the home needs some repairs that would impact the sale price. It is also a good idea if you need to make repairs for a home you are about to list for sale.
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 small 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 will have high closing costs. Lenders base closing costs on the entire amount of the mortgage. 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 besides to your first one. So, the payment will be an extra amount to what you are paying now. Lenders disburse this loan as one lump sum so you need to budget. 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. 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 caps on amounts you can borrow regardless of how high your income is or how much your home is worth. Homeowners can only use the FHA 203(k) loan 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 helpful if the repair on the home is a result of an emergency. 
  • These loans only need verification of income. 
  • They have lower closing fees.
  • You are not using your home as collateral. So, you can keep paying the loan 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. Lenders won’t make you to do so.
  • Home improvement loans are also better than using credit cards. Some credit cards come 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.
  • You can use home improvement loans for a luxury item that increases your home value such as a home theater. You can only use FHA Title 1 loans for things that are necessary parts of a house such as roofing or plumbing.
  • 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 without the repair or upgrade 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 right away
  • 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 outdoor fireplace
 Our home improvement loans are the best options for you. Contact TGUC Financial today to get started.