Category Archives: Home Improvement Loan Options

There are lots of different home improvement financing options and loan types available to help you pay for a large or small home improvement

The Unsecured Home Improvement Loan vs Mortgage Refinancing

Posted on by JT Miller

When you find yourself needing to borrow money to remodel or add on to your home you’re going to be faced with the daunting task of figuring out the best way to pay for the project. It’s obviously best to pay for a home improvement with cash that’s readily available but that’s a luxury that not many people can afford. Most homeowners will look to borrow the money in one of two ways: they’ll either take out an unsecured home improvement loan or they’ll refinance their current mortgage through a home equity line of credit or a home equity loan.

The question, of course, is which type of home improvement loan is best?

The answer to this question will depend upon your financial situation and the amount of equity you have built up in your current home. There are a number of factors to consider when you are first going over the details of how you’re going to afford a major construction or remodeling project.
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Should You Borrow Money For A Home Improvement If You Have The Money In Savings?

Posted on by JT Miller

Even if you have the money available there are some times when you may want to actually pay for a home improvement with a loan rather than spend the cash you have saved up. Though taking out a loan will often increase your overall cost, there are some distinct advantages to borrowing money instead of depleting your savings. By borrowing cash you can pay it back all at once or a little at a time in case another emergency need arises. Some people purposely pay for large purchases, such a home remodeling projects, with their home improvement credit card just to benefit from the reward point bonuses. Sometimes taking out a home improvement loan can actually save you money in the long run, especially if you’re borrowing money from the same company that is supplying the materials and labor. Both The Home Depot and Lowe’s, as well as other big-box retailers, will give you a discount on their services and supplies when you finance your project through them. This guide will help you decide if you should pay for a home improvement with borrowed money or with the money you have saved up or, in many some cases, both.
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Energy Efficient Home Improvement Loans

Posted on by JT Miller

If you’re looking to buy a new or existing home that has a lot of energy-efficiency upgrades or if you’re looking to refinance your current home with the intent to improve its energy efficiency, then you may qualify for an energy efficient home loan. Energy efficient home loans are offered by a number of different private lending and mortgage companies that work with Fannie Mae, Freddie Mac, the Federal Housing Administration or the Office of Veteran’s Affairs, and they are designed to give homeowners more purchasing power in order to promote “greener” homes and more energy efficient choices in building and home improvements. Continue reading →

How To Get The Most Out of Your Home Improvement Loan

Posted on by JT Miller

So you’ve got a home improvement project that needs to be completed and you have worked with your bank or lender to get a home improvement loan. You have the money or you’ll be getting the money soon, but before the first nail is driven into a board you can begin maximizing how much bang you’re going to get for your home improvement buck. Here are some ways you can get the most out of your money by working with and even helping your home improvement contractor:
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How To Barter for Home Improvements

Posted on by JT Miller

This site specializes in bringing you news and information about how to get a home improvement loan, but there are times when taking a loan for home improvements may not be a good idea either because your finances are unstable, you’re thinking about moving and don’t think you’d recover the cost or you’re saving up for something else. But if the roof is leaking or your furnace just went up or you’re in desperate need of some sort of repair or improvement on your home then you still have some choices.
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VA Home Improvement Loans

Posted on by JT Miller

Many veterans are aware they may receive less expensive financing by way of VA Home Improvement Loans and Grants. Although the veteran has heard about loans and grants offered by the Federal Government very few are aware of what is necessary to qualify for a VA loan. If you are a veteran or you are an unmarried survivor of a veteran who has passed away you owe it to yourself to review the advantages of attaining home improvement financing through the Veteran’s Affairs program. Continue reading →

Decrease Your Home Improvement Loan Amount By Reducing Your Labor Costs

Posted on by JT Miller

The purpose of this site is obviously to help you improve your home and save money at the same time. Since most major home improvements involve more money than most people have sitting in the bank, it makes sense to finance or take out loans for those home projects in most cases. Obviously, there are many different types of home improvement loans, all of which have advantages and disadvantages. Continue reading →

How You Can Afford A Home Improvement When You Have No Equity

Posted on by JT Miller

As we all know, the housing bubble has popped. This has put a strain on people who were hoping to use the increased monetary value of their homes to perform some much needed home upgrades. The crash in home values across the nation means there are many people who are now living in homes that have not built up any added value over the past couple years.  But if you have a home improvement you have to get done, how can you get the loan you need without having any equity in your house? Continue reading →

FHA Title I Home Improvement Loans

Posted on by JT Miller

There’s a lot of confusion about Title I home improvement loans and what they really are, which is a shame because they’re one of the best forms of home improvement financing available. Did you know you could borrow up to $25,000 for under $200 a month…even if you don’t have no equity built up in your home?

There are misconceptions about how Title I loans for home improvements work and even what they can be used for. In this article we’re going to try to cover some of the more common questions about this home improvement loan program.

What is a Title I Home Improvement Loan?

The US Department of Housing and Urban Development (HUD) has created a home improvement loan program through the Federal Housing Administration (FHA) that can help homeowners fix up their homes, perform repairs on their house or even build on additions or non-residential buildings (such as a shed) on a piece of property that they own. The borrower must have a good credit history and be able to pay back the loan with monthly payments.

It’s important to note that an FHA Title I home improvement loan is not actually a loan or a grant directly from the government. Rather, HUD insures private lenders against the losses of these loans, which makes more local private lenders willing to give out these loans to homeowners. That means that when you apply for a Title I home improvement loan you’re actually applying for a loan through a private lending institution and not through HUD or the FHA.

Many local banks, credit unions, mortgage companies and other lending institutions are actually Title I lenders and you’ll still want to shop around with each to get the best loan for you. Even trustworthy online lending institutions like offer competitive FHA Title I Home Improvement Loans.

What kind of home improvements are covered with Title I Home Improvement Loans?

The home improvement project can be as small as adding some extra insulation to the attic to larger home projects such as replacing a roof, remodeling a kitchen, adding a bathroom, buying a new furnace or constructing a new room on your house. Single family Title I home improvement loans must be used to pay for structural or site changes, repairs or additions and cannot be used for luxury or extraneous items like swimming pools, hot tubs, barbecue pits or interior decorating. The improvements must also be part of the permanent structure and cannot be temporary in nature.

Multifamily structure home improvement loans can only be used for alterations and repairs.

What are the borrowing terms of a Title I Home Improvement Loan?

Here are he maximum home improvement loan amount and loan terms are based on the type of structure you’re improving:

  Maximum
Loan Amount		 Maximum
Loan Term
Single Family House $25,000 20 years
Manufactured House on
Permanent Foundation
(classified and taxed as real estate)		 $17,000 15 years
Manufactured House
(classified as personal property)		 $7,500 12 years
Multifamily Structure up to $12,000 per
living unit,
with a maximum of $60,000		 15 years

The interest rate of FHA Title I home improvement loans can vary from one location to another and even from one loan lender to another. The interest rate is usually a fixed rate that is mostly based on national loan interest rates at the time.

Want to really see the benefit of a Title I home improvement loan? If you were eligible to borrow that maximum of $25,000 with a 20 year term and an annual rate of 6% (that’s about the average loan rate these days) then your monthly payments would be a measly $179.11! That’s an incredible deal and it’s unlikely to be matched by any traditional home improvement loan or credit card offer!

What makes an FHA Title I Home Improvement Loan different from traditional home improvement loans?

First, no equity is required to apply for a Title I home improvement loan.

Second, the amount of money you can borrow can be dictated by the estimated value of your home after the improvements are done. This is especially helpful if you don’t have any equity in your home at the moment, but need to complete some home improvements to increase the value of your home.

Third, there are lower closer costs due to the lack of a need for an appraisal and the qualifications for applying for an FHA Title 1 loan are often less restrictive than conventional home improvement loans.

Forth, while most home improvement loans have a short loan term of only five years, an FHA Title 1 Home Improvement loan can have a repayment plan of up to 20 years with no penalty for paying the loan off early.

Are there any other eligibility restrictions for a Title 1 Home Improvement Loan?

There are only a few real restrictions beyond those listed above. If you’re in a “new construction” home then you have to have lived in the home for more than 90 days. Loan amounts over $7,500 are secured against the mortgage or deed of the property you are improving.

The bottom line: if you’re looking for a low interest home improvement loan that doesn’t require home equity, consider learning more or applying for an FHA Title I home improvement loan. Ready to get started? .

The Unconventional Neighborhood Home Improvement Loan

Posted on by JT Miller

There are lots of different ways to pay for home improvements, but some methods are more conventional than others. When most people think about financing their home improvements they often consider traditional means of borrowing money such as going to a bank for a secured home improvement loan or using a low interest home improvement credit card.

neighborhood home improvement loanIf, however, your financial situation doesn’t allow you to apply for those sorts of loans, and your home needs some sort of repair to keep it safe then you may want to consider a “good neighbor” home improvement loan.

Neighborhood loans for home improvements have been becoming more common as home prices fall people have lost most of the equity they have in their homes. The concept is simple: people helping people fix up their homes, either with direct help or by providing indirect support such as food or something else for trade.

Here’s a practical example of how a neighborhood home improvement loan would work: Let’s say you’re an elderly woman who needs to repair a leaky roof and maybe have some of your front landscaping thinned out. Instead of going to a bank or lending institution to try to borrow the thousands of dollars needed for these home improvements you could turn to some neighbors who may know how to repair the shingles on a roof and some able bodies who can tear out some bushes. In return for this service you might be able to offer some home cooked meals, knit a blanket or afghan or even offer to do some home cleaning for the people who are offering to help you.

If you don’t have any neighbors with the skills needed to improve your home, there is another way you can still finance your home improvements. You can offer to take out a personal loan from your neighbors and in return you can pay back the loan at a small interest rate, much lower than what a bank might charge. In this situation your neighbors get to make a little extra money with the interest charged and you get to improve your home at a much cheaper rate than what a traditional lending institution might charge. To be sure everything stays friendly, you should definitely speak with an attorney and probably have a written agreement drawn up.

This neighborhood home improvement loan is simply a smaller, and more local, version of what Lending Club is actually doing : sign up is free and easy, loan applications are quick and online and the interest rates are lower than most banks. You can read more about using LendingClub.com for a home improvement loan and see if the it’s for you. It’s essentially an internet version of a neighborhood loan. It’s people lending money to other people at a low interest rate.

Of course, when everyone in a neighborhood pitches in an helps another neighbor improve his or her home, everyong benefits. The nicer and more updated each home in the neighborhood is, the more everyone’s home is worth. By raising the value of one home, you in effect increase the value of all homes in the entire neighborhood. So loaning your neighbor help or money to update his or her home is actually like giving yourself a loan as well!