How To Get A Swimming Pool Loan and Financing
One of the most expensive home improvements you can make is installing a swimming pool. Putting in swimming pools is so popular that there are now entire financial companies who only provide swimming pool financing and loans to homeowners. By the time it is hot enough to use a pool it is usually too late to install it during the same season, so that’s why you want to think ahead when planning to build a pool, and more importantly, applying for a pool loan.
Decrease Your Home Improvement Loan Amount By Reducing Your Labor Costs
One of the best ways to shrink the amount of money you’re borrowing for a specific project is to reduce the cost of labor for your home improvement projects.
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Knoxville Tennessee Forgivable Home Improvement Loans
Some residents of Knoxville, Tennessee are eligible for a new forgivable home improvement loan initiative called the “My Front Yard” program.
(Show me more...)How You Can Afford A Home Improvement When You Have No Equity
You can get money for a home improvement without using the equity in your home.
(Show me more...)The Best Home Improvement Loan May Not Be From A Bank
If you’re looking to finance a home improvement this year, there’s still a good chance that you’ll be able to get the loan you need as long as you don’t rely on the more traditional forms of home improvement loans. A traditional bank may not be your best choice for a home improvement loan any more. (Show me more…)
FHA Title I Home Improvement Loans
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
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.
If, 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!
Peer-To-Peer Loans for Home Improvements – Review of Lending Club
How would you instead like to get a personal loan for home improvement at low interest rate (possibly below 8%!) with an easy online application and quick approval turn around? You can actually get exactly that through the acclaimed and award-winning online loan service called Lending Club.
Maybe you don’t have any equity built up in your home or maybe you simply want an unsecured loan for some home improvements. You could go to a bank and look into their home improvement financing options, but a lot of banks are tightening their belts and simply not loaning money out the way they use to. If you did actually get approved for a home improvement loan from your local bank you might expect to pay an interest rate of anywhere between 11% up to over 18%, depending upon the lending institution.
Lending Club gives out loans for any amount between $1,000 to $25,000 and you will have a fixed rate for as low as 6.78% currently. All the loans are three year installment loan and your interest rate will ultimately be set based on a number of different factors in your credit report.
Lending Club turns the loan process into what it should be: people helping people. The site joins together people who want to loan money with people who want to borrow money, but it does so in a clever way to minimize risk to lenders and to give borrowers money fairly quickly and at a lower rate that almost any bank out there. It’s also very secure and your identity is always protected. You can borrow money for home improvements or just about anything else you want. They give out all sorts of personal loans including debt consolidation loans, home improvement loans, apartment rental loans and even education loans.
To get these low rate loans, you need to have a pretty decent credit score. If you’re not sure what your credit score is or you think you may not qualify you may want to read about how to get a home improvement loan when you have poor credit. Borrowing money is really easy with Lending Club. You just need to follow these four simple steps:
1. Join Lending Club for free! You just click on the “Continue” button on the “Borrow” side and you can setup free a username and password to join the site and find out more information about exactly what you qualify for.
2. Once you’ve joined you’ll want to poke around and check out the details of what they offer. When you want to fill out a loan application, you simply click on the “Borrow” tab and then click on the “Get a Loan” link near the top of the page. All you do now is fill out the loan application online. It asks for some basic financial information and verifies your identification and a valid bank account.
3. Once Lending Club approves your application your anonymous information will be given a letter grade from A to G and will able to be browsed by lenders. All your personal information is completely confidential and secure. When a lender wants to let you borrow money he or she will simply choose to fund it in increments as small as $25. You’ll probably end up having lots of lenders, but don’t worry, you still will pay back the loan with just one payment to LendingClub per month. Once your entire loan amount has been funded you’ll get your money in a day or so via electronic transfer!
4. You have your money, so go fix up your dream home! In the mean time LendingClub will automatically withdraw your payments from your validated bank account every month on the exact same day, so you won’t get caught by surprise or have to worry about sending in your payments late. It’s all done automatically for your convenience!
How can they offer loan rates so much lower than banks? They’re a company that deals exclusively with online transactions, so they don’t have a lot of overhead caused by slow paperwork (it’s all computerized!) or paying for parking spaces and store front rent (they just need a website). It’s a streamlined loan process in which everyone wins!
So if you’re looking for a low rate home improvement loan with reasonable terms then you’ve got nothing to lose by joining Lending Club for free and checking it out!
Home Improvements Loans Can Lead to Big Tax Deductions
You may be able to reduce your income taxes by taking out a loan to cover some much needed home improvements. Not all home improvements qualify for a tax deduction or tax credit, but in certain kinds of home improvements can decrease your taxes not just for the calendar year in which you finish the project, but also for years to come.
If you are required to perform a home improvement project or remodel part of your home to accommodate a medical condition then all or part of the cost of that project may serve as a tax deduction, which means you can reduce that amount from your taxable income for the year.
If, for example, someone in your home is suddenly confined to a wheelchair you may be able to deduct the amount it takes to install an elevator, lower kitchen cabinets or simply widen doorways in your home. Only certain home improvements related to medical costs apply, and you may need the written statement of a doctor or medical professional.
Likewise, the latest Stimulus Package has added tax credits to the 2009 and 2010 calendar years for certain energy saving home improvements including installing new energy efficient windows, doors, certain types of roofs, heating and air conditioning units. You can use up to 30% of the cost of any project as a tax credit, with a total of up to $1,500.
For example, installing $6,000 worth of solar panels on your home may qualify you for the maximum $1,500 tax credit at the end of the year. In addition, some states and even some utility companies offer additional money-saving and tax incentives for making your home more energy efficient.
Obviously, not all home improvements are eligible for a tax deduction. You should talk to an income tax professional or research some of the details surrounding home improvement tax deductions before you embark on any home upgrade or remodeling project.
You obviously may not be able to afford all of these projects without borrowing some money, but even certain home improvement loans can lower your taxes if the money is borrowed against the mortgage or equity in your home.
If you take out a home equity loan specifically for home improvements you can often use the interest you pay on the loan as a tax deduction. This is an option that is available with only certain types of home improvement loans. Each year the loan is open and you pay interest on the loan is another year you can deduct that interest amount from your taxable income in some cases.
Again, before you perform any home improvement or apply for any type of home improvement loan for tax reasons you should definitely speak with a qualified tax accountant to make sure your home improvement plans and loans are going to follow the letter of the law and be eligible for the greatest tax deductions or tax credits.
Fixed Rate vs Variable Rate Home Improvement Loans
When you’re applying for almost any type of home improvement loan you’re eventually faced with the question of whether the loan will be a fixed rate loan or whether the interest rate charged will be variable. The difference between the two types of loans could save you hundreds, if not thousands, of dollars over the life of your home improvement loan.
Let’s first talk about how a typical home improvement loan from a bank or lending institution works. Let’s say you borrow $10,000 to build a new deck on your home. You pay back the loan over time, but you also pay a little extra money, called interest, that is agreed upon when the loan is signed. This interest is essentially the profit that the bank makes for loaning the money to you. If you borrow $10,000 and agree to pay it back over 5 years (plus interest) then at the end of those five years you may actually have paid $13,000 or more. Sometimes the rate of interest through the life of the loan stays the same, but sometimes that rate goes up or down and can dramatically affect your monthly payment.
Fixed Rate Home Improvement Loans: When interest rates are low it’s often smart to go with a fixed rate loan because the chances of the rate going up are greater than the changes of them going down. Lower interest rates mean you can borrow more money and pay less interest, which is obviously a good thing for consumers who want a cheap home improvement loan. Fixed rate home improvement loans are usually designed so that every monthly payment is exactly the same through the life of the loan. This is good because it means there won’t be any surprises. The rate you can get on a fixed rate home improvement loan is often based on your past credit history, whether it’s a secured or unsecured loan and the amount of the loan and payment length.
Variable Rate Home Improvement Loans: Some home improvement loans can have a variable rate of interest which means the interest rate of the loan changes as interest rates in the market place go up and down. Banks generally like variable interest rate loans because there’s always the chance that interest rates will go up, increasing their profits and your payments on the loan. So why would you choose a variable rate loan at all? Banks will often offer a slightly lower rate to entice customers to use them. Variable rate home improvement loans are often still good loans and can be great ways to fix up your home. Sometimes a variable rate loan will actually cost much less than a fixed rate loan if the interest rates go down over the life of the loan.
While different home improvement loans offer different payment terms you can sometimes even refinance a home improvement loan if you find the payment terms to be not to your liking. Whether you get a fixed rate or variable rate home improvement loan is a completely personal choice that depends upon the market conditions of tha time, your individual loan needs and your personal credit history.