What Is An Unsecured Home Improvement Loan?
Get personalized pre-qualified offers with no impact to your credit score.
Why TGUC For Unsecured Home Improvement Loans?
Estimate your project cost
Use our Cost Estimator technology to receive real time market data for similar projects in your area.
Doesn’t impact credit scores
Competitive loan options
Unsecured Home Improvement Loans up to $100,000; Terms up to 15 years; Competitive APR’s.
Choose a contractor
What Our Customers Say
"TGUC Financial has an easy application process and they reached out to ask if I needed any help! Great customer service."
How TGUC Works For Unsecured Home Improvement Loans
Fill out a form online to pre-qualify with no impact to your credit score.
Our Trusted Partners
Join more than 10,000+ Borrowers
Get personalized loan rates no impact to your credit score.
Why Unsecured Home Improvement Loans Are a Good Idea
Home equity loans and equity lines of credit ask you to use your home as collateral. Homeowners might feel reluctant to apply for home equity loans as there is a risk of foreclosure. But, in a home improvement loan, you don’t have to worry about these requirements. An unsecured home improvement loan is a personal loan that has fixed monthly payments and shorter loan terms.
What Are All the Requirements to Qualify for an Unsecured Home Improvement Loan?
To qualify for a personal loan, homeowners should fulfill some basic requirements. Even if you don’t have a good credit history or equity in your home, you have to qualify for a few criteria to qualify for a personal loan.
Online lenders offer a loan for homeowners with minimal documentation. In this article, let us look into the minimum requirements of a personal home improvement loan.
An unsecured personal loan comes with the verification of income sources. Since homeowners don’t have to use their homes as collateral, providing home improvement loans is riskier for online lenders. Online lenders provide home improvement loans for all projects with the verification of financial sources.
With the verification of financial sources, loan lenders will offer the rates and terms accordingly. Loan lenders should check how much a homeowner can repay with the verification of financial sources. This financing option is applicable for all home improvement projects with the documentation of income sources.
Do You Have a Low Credit Score?
One of the many apprehensions of a homeowner in getting a home improvement loan is qualifying with a low credit score. Many loans for home repairs like cash-out refinancing, home equity lines of credit, and home equity loans offer loans to people with an excellent credit score. If you don’t have a good credit score, it might take some time for you to qualify for a loan.
In the personal home improvement loan option, homeowners need not have an excellent credit score. If you have an emergency repair at home, it is easy to qualify with a low credit score. Some unsecured home improvement loans have minimum credit score requirements. A homeowner should check the credit score requirements for financing options before applying for them.
No Equity Percentage
The equity percentage is one of the main requirements if you borrow loans for large home renovations. In a secured home loan option, you have to use your home as collateral. If a homeowner cannot repay the loan amount in a secured loan option, there is a risk of foreclosure. On the other hand, the personal home improvement loan option doesn’t require an equity percentage.
A homeowner should not have to worry about the risk of foreclosure while borrowing unsecured loans. Home improvements can vary from small repairs to large repairs without the need to check equity percentage, a homeowner will easily qualify for the home improvement loan.
Get Your Funds Quickly
When you are planning your home improvement project, you should first know the type of renovation. If there is a need for an emergency repair at home, you should qualify for a loan quickly. An unsecured home improvement loan doesn’t ask for a lot of requirements. Homeowners will easily qualify for this financing option with minimal documentation.
Qualifying for an unsecured home improvement loan is easy and many homeowners can benefit from unsecured home improvement loans. Homeowners will get a loan amount with fixed interest rates quickly. Personal home improvement loans develop the home’s retail value with a fixed interest rate. This benefits homeowners to a very great extent.
Loan terms for unsecured home loans are short-term compared to secured loans. For secured home improvement loans like equity loans, the loan term can extend up to 30 years. In cash-out refinancing loan options, homeowners have to show 90 percent equity to borrow the loan amount. The loan term in cash-out refinance can also extend up to 30 years.
In an unsecured home improvement loan option, you don’t have to pay the interest rates for years. The interest amounts you pay shouldn’t exceed the current value of your home. Choosing the unsecured home loan option is beneficial for homeowners to increase the current value of their homes with shorter loan terms.
Fixed Rates – Monthly payment
In a home equity line of credit, the interest rates will fluctuate and it is determined by your credit score. If a homeowner has a good credit score, the interest rates will be around 3 to 12 percent. But, when the interest rate changes from month to month, it might hamper the budget of a homeowner.
Unsecured home improvement loan option doesn’t have fluctuating interest rates. Homeowners can repair their homes without breaking the budget. In some unsecured home improvement loans, the homeowners have to pay higher interest rates as it is borrowed without making your home collateral. Homeowners should do a little bit of research on the unsecured home improvement loan options and the interest rates.
No Origination Fees
In secured home improvement loans, homeowners have to pay origination fees as security. The origination fee in secured loans is around 1 percent of the loan amount. In some personal loan options, lenders might ask for origination fees. The homeowners should calculate the percentage of the origination fee to the loan amount before applying for it.
Some personal home improvement loan options allow you to borrow personal loans without paying origination fees. The origination fee is not a disadvantage in the financing option. But the homeowners should calculate the percentage of the fee and apply for it based on the loan.
Many homeowners do their home improvement projects with passion and innovative ideas. Homeowners have several financing options, like home repair loans for bad credit, a lump sum for home additions, and no equity loans.
When you are planning to renovate your home, you should check all the factors above before you apply for them. The personal loan option is one of the best home repair loans that come with minimal documentation and even fewer risks. Even if a homeowner is planning to renovate their homes with credit cards, they can usually only pay for small renovations. TGUC Financial personal loan offers loans for homeowners with low credit scores and no home equity. Borrowing an amount for home repairs is a great investment for homeowners. The personal loan option eliminates all the risks and organically increases the home’s value.
Frequently Asked Questions
1. Is an unsecured home improvement loan a mortgage?
An unsecured home improvement loan is not a mortgage loan. A mortgage loan asks for collateral but unsecured loans don’t put you at the risk of foreclosure.
2. What are the cons of unsecured personal home improvement loans?
Some unsecured loan options will have higher interest rates. Homeowners should check the eligibility criteria in several personal home improvement loan options.
3. Is adding luxury items at home worth it?
Adding luxury items at home can exponentially increase the worth of your home. Homeowners with this personal loan option can also borrow a loan for adding luxury items too.
Apply For An Unsecured Home Improvement Loan
Get your personalized Unsecured Home Improvement loan offer within 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.