Home Improvement Financing

Home ownership is one of the great American dreams, but paying for that home is often difficult when things go wrong and your credit rating is damaged through no fault of your own. The good news is that even with bad credit you can often get that desperately needed home improvement financing!

Sometimes your home simply needs a repair or upgrade to remain safe and livable and in those times it’s best to get a responsible type of home improvement financing which can help you pay for the repairs on your home without harming your credit score even more. Most of these types of repairs require substantial amounts of money which can often come in the form of a home improvement loan or some sort of financing.

If you only need some small repairs or wish to pay for some minor home improvements, then you may be able to get a hardware store credit card for your home improvement financing, but with bad credit it will probably have a reduced limit and higher interest rate. If you are unable to get a credit card for home improvement financing then you will probably need to speak to a larger lending institution such as a bank.

There a couple ways you could have “bad credit” but most involve having outstanding debt and not making payments to lenders on time. If you have bad credit you’ll find that it will be more difficult for you to get home improvement financing to fix up your house, but it certainly is not impossible.

Here are a few things you can do to improve your chances of getting the home improvement financing that is often needed to complete those necessary home improvement projects:

Have Home Improvement Financing and Home Improvement Plans Ready: You probably won’t get any home improvement financing if you just walk into a bank and ask for $20,000 to fix your roof. Instead, you should do your homework and know exactly how you’re going to pay off the home improvement financing and how you’re going to have your roof fixed. Get detailed quotes from roofing companies or prove that you can do the repairs yourself and show details home improvement plans and material costs. Banks are basically investing in you when they give you a home improvement loan, so they want to make sure their investments are wise ones. The more details you give a bank, the more likely they will be to give you a loan.

Keep Your Recent Credit Record Clean: You may have had some problems paying bills in the past, but try to at least pay all your bills on time for the few months before you apply for any sort of home improvement financing. Banks make money by lending money to people and collecting on that interest. They do want to lend money to you and will often give you the benefit of the doubt if your recent credit history shows an improved pattern of payments. This is crucial before you apply for any home loans or any type of home improvement financing.

Consider Home Improvement Financing through a Secured Loan: There are secured and unsecured home improvement financing options. If you have bad credit then banks will probably not give you a unsecured loan for any reason. An unsecured loan is based on your income and your past credit history of paying off debt regularly. Let’s face it: we all have tough times and if you have bad credit then the chances of banks lending you money is slim. There is another options, though. However, a secured loan is often given with some type of collateral being offered in exchange for the money you’re borrowing. If you own a home that is worth more than you paid for it, then you can use the value difference as a bargaining chip for a secured loan. Essentially the value in your house is being used as collateral to pay back the home improvement financing you are applying for.

It’s also important to remember that even if you have bad credit you still have a few other home improvement financing options.

Any one of these methods will help improve your chances of getting home improvement financing if you have bad credit. Using all of these methods will great increase your chances of a bank working with you. Remember: the more you can show that you are not at risk of defaulting on the loan due to your bad credit, the greater your chances of getting that home improvement financing even if you have had bad credit in the past.

Did you know you can use home improvement financing to actually help sell your home?

The US housing market has hit a rough patch over the past year which means that a lot of people are trying to sell their home but having a difficult time doing so. There are actually more houses on the market to be sold than there are people who want to buy houses right now (or can afford to finance a home mortgage), which means that home sellers have to lower their asking prices just to get people interested in their home. These lower home prices and lack of sales are what you want to avoid with some creative home improvement financing.

If you are trying to sell your home right now and not having much success then you may want to consider ways of using a home improvement financing to actually help you sell your current home and actually make a little more money than you might expect. This is not as difficult as it seems, especially when you know where your home improvement loan money is best spent.

First home sellers should get an idea of what other houses are selling for in their area, and take a look at the upgrades and improvements that have been done. This can usually be done with help of a real estate agent or simply a real estate website. If other people have taking out home improvement loans or financed home improvement construction then you may want to consider doing the same.

Look at the other homes. Do many of them boast new windows, new carpeting or new roofs? Is their landscaping new and pleasing to potential buyers? What about an upgraded kitchen or extra half bathroom? How about simple interior decor items like crown molding, new baseboards or fresh paint?

Some of these home improvement projects are not very expensive to complete and can really make a big impression on prospective home buyers. This is where you may need to look into some sort of home improvement financing or small home improvement loan to complete your projects. A loan as small as a few hundred dollars could help you change your home enough to attract and win over a home buyer. Here are a few suggestions in different price ranges:

Home Improvement Financing Amount of $500 - $2,500: Look at updating the interior of the home you wish to sell with fresh neutral colored paint or new crown molding and baseboards. Consider replacing vinyl if you have it in a kitchen or bathroom. For your wallpaper you may want to have a professional remove it and paint the walls a neutral color. Consider freshening up your landscaping with new plants and pruning back anything that is overgrown. Simply being able to list the terms “crown molding” and “new floors” in a home ad will attract more attention than you normally would get with a regular listing.

Home Improvement Financing Amount of $2,500 - $5,000: Fully replace worn flooring like tile or hardwood or even carpeting is a good idea at this price range. Simply having your carpets steam cleaned is a good start, but putting down new neutral colored rugs or tiling will go a long way to making a great first impression. People who walk into a home almost always make a home-buying decision within the first few minutes, so any sort of good lasting impression will help you.

Home Improvement Financing Amount of $5,000 - $10,000: This is for larger home improvement projects that could really increase your return on investment. When people look to buy a home they really like updated kitchens and bathrooms. You don’t have to choose the most expensive materials for these, but you do want to choose neutral colors that many different people may like. Updating your kitchen with stainless steel appliances or replacing your counter tops with any sort of granite will definitely bring more buyers to look at your home.

You may even want to add on another 10% - 20% of the home improvement financing costs to the price you selling your home for in an effort to recoup some of your money. Your home will almost definitely be more valuable now that you’ve done these improvements, so your price should reflect that. If you had a home improvement loan of $10,000 you may want to increase your asking amount by $12,000 or even $14,000 to account for the inevitable offer and counter-offer process that usually accompanies the buying or selling of a house.

As you can see, the money from a small home improvement loan applied to the right projects can really go a long way to selling your home. You’ll get to live in a home with new upgrades, you’ll most likely sell your home quicker and with the increased money from your house sale you’ll be able to pay off that home improvement financing almost immediately!

One of your many home improvement financing options is to use a credit card given out by the large Lowe’s home and garden store chain. Using a credit card for a home improvement loan is actually like using an unsecured loan for your home improvement financing. Lowes actually has several different credit cards to choose from so you have some options as to how your want to finance your home improvement.

Lowe’s has a Consumer Credit Card, a Business Credit Card and now a new Project Credit Card to meet just about anyone’s home improvement financing needs. Here’s quick breakdown of each card:

Home Improvement Financing through the Consumer Credit Card: Has such features as low monthly payments, exclusive home improvement financing offers from time to time, no annual fee and a sophisticated online account system which allows you to view your account, make changes to your profile and even download your purchases into Quick, MS Money or Microsoft Excel. It has a relatively high rate of interest for a home improvement loan, but because it has a higher interest rate is it probably one of the easier forms of home improvement financing to get if you have questionable or bad credit. This is credit card is designed for the person who has a lot of little home projects and needs some help with home improvement financing from time to time due to credit problems or short credit history.

Home Improvement Financing with the Project Credit Card: Designed more for larger home projects that need financing, this card offers a six month period to pay off your purchases before interest begins accruing, lower interest rates and no annual fees. It also offer the same online account features as the Consumer Card. This is ideal for people with good credit who are looking for a flexible loan to cover project costs without going to a bank for a more traditional form of home improvement financing.

Home Improvement Financing with the Business Credit Card: For the professional home improvement contractor or construction manager, this card offers competitive rates, itemize bills for easy tracking, the ability to issue multiple cards and many professional financing services. This credit card is designed for the home improvement contractor who needs a little home improvement financing of his own to buy the supplies and finish construction projects for his clients.

As always, you’ll want to read all the legal information before moving forward with financing your home improvement with credit cards. You’ll be responsible for paying back your home improvement loan, no matter how small or how large the amount. All three credit cards offered by Lowes serve a home improvement or construction loan need and serve as excellent forms of home improvement financing.

There are a lot of different ways to improve your home and there are almost as many different ways to get home improvement financing to pay for those improvements. But just as you wouldn’t use a sledgehammer to put in a tack nail, there are different types of financing that are made for different types of home improvement projects.

There are a couple different factors that you should consider when first considering applying for some sort of home improvement loan or financing. First, you should consider the size of the project and how much it will ultimately cost. Second, you should consider the time frame you’ve set aside to pay off the home improvement loan and interest associated with the borrowed money. Third, you should consider your ultimate goal you want to accomplish with your home improvement.

Here are three common sources of home improvement financing and how they should be used:

Home Improvement Credit Card - These credit cards are given out by large home improvement stores who want to make money by financing your projects and having you buy products from them at the same time. Typical projects include things like replacing kitchen cabinets, upgrading appliances, building a deck, buying tools for a workshop or other things which you may be able to do on your own. Using store credit cards for home improvement financing is best for less expensive projects that you think you’ll be able to pay off quickly. They are easy to get, but they sometimes have a higher interest rate that other types of home improvement financing.

Home Equity Loan for Home Improvement - A home equity loan allows you to receive a set amount of money which is given to you all at once based on the amount of equity or extra value you have in your home. These are better for mid-sized projects like refinishing floors, upgrading electricity or even remodeling a bathroom. They are typically used for home improvement projects in which you have to hire experts. A home equity loan is a slightly more difficult type of home improvement financing to secure but the interest rate can be fixed and lower than a home improvement credit card. Using a home equity loan as form of home improvement financing may allow the interest you pay on the loan to be deducted on your income taxes.

Home Equity Line of Credit (HELOC) - Sometimes a little more work than a home equity loan to get, a home equity line of credit allows you to write checks and charge against the amount of equity in your home. This can be a fixed or variable rate and it’s best for larger projects where you may not even know the cost of the home improvement project. A home equity line of credit is the perfect home improvement financing vehicle for upgrading your furnace or central air conditioner, installing a pool, remodeling a kitchen or adding an addition if you have enough equity. Like a home equity loan the interest you pay on form of home improvement financing may be tax deductible and can be paid over a longer period of time.

Finally, you need to consider what you hope to accomplish with your home improvement project. If you are hoping to improve your home and increase its value so that you can turn around and sell it then you may want to stick with the home improvement credit card for financing your home improvement projects, especially if it has a low or zero percent interest rate for a short period of time. If you don’t plan on moving and simply want to improve your home for your own benefit then you might want to consider one of the other types of home improvement financing.

Whatever you do, remember to do your research and plan ahead before moving forward with one of the many different types of home improvement financing options available.

If you’ve ever seriously looked at financing a home improvement project, you know how expensive it can be so. Construction supplies, hiring a qualified contractor and various fees for permits can quickly add up. Most people can’t afford a large project to remodel or add an addition to their home without some form of home improvement financing.

Banks can often give out home improvement loans, but banks expect you to pay back not only the loan, but also the interest accrued on the loan. Though interest rates are still relatively low, they amount of interest you pay can still be stunning. A $10,000 bathroom remodel may actually end up costing you $15,000 by the time you’ve paid back all the interest. Banks and tradtitional lending t not always the cheapest sorce of home improvement financing.

Instead of a traditional bank loan why not look into some of those credit cards offered by the larger home improvement store chains? As long as you have decent credit and a plan to pay them back, it’s usually an option worth considering.

Those credit cards have several distinct advantages:

Zero Interest on your home improvement financing for a Limited Time: Many of those big chain store credit cards give you a period of six or 12 months with no interest charges as long as you use the credit card in their store to buy their home improvement products or contract their services. The Lowe’s Credit Card is famous for offering zero percent home improvement financing deals. A year without interest could save you thousands of dollars in payments depending on the size of your project!

In-Store Home Improvement Discounts: When you initially use those home improvement store credit cards you will often get a small discount as well. You might save 5% - 10% on the total cost of the project, which could be a pretty good chunk of change at the end of the day. Any form of home improvement financing that saves you money in the long run is worth considering.

All-In-One Home Improvement Financing Solution: Instead of working out your home improvement financing through one company, waiting for a check and then visiting a dozen stores to find a kitchen faucet you can go to one store to get the home improvement loan in the form of a credit card and then buy a faucet, a sink, a refrigerator, all the cabinets and even hire and schedule the installers all at one time. You don’t necessarily need a big hardware store credit card to do this, but things do seem to go much smoother this way.

How can these home improvement stores such as Lowe’s and The Home Depot offer these cards with such great rates? Traditional banks make their money by giving you a loan and charging you interest. The home improvement stores don’t have to make money on interest because they are already making a profit on you buying items from their store for retail price. These hardware stores are essentially giving you a no-interest loan for a short period of time so that you can buy more of their home improvement products and services!

It’s a sneaky form of home improvement financing, but everyone wins! The store sells more inventory and makes more profit while the customer is able to “borrow” more money to make home improvements without having to pay any interest for a limited time! Even more enticing: most of these home improvement store credit cards have no annual fee and they have online account management options.

You can see why these cards are so popular. A limited time of no interest payments, possible discounts and the ease of ordering everything in one store makes these cards one of the easiest and most affordable forms of home improvement financing.

When you start researching home improvement financing you’ll quickly learn that there are different ways to borrow money for home improvements. The two general types of loans are often categorized as “secure” and “unsecure” loans.

Unsecure loans are loans which are given to you based on your credit rating. Your credit rating is really nothing more than a measure of your historical ability to pay off debts and money given to you in the past. If you’ve always paid your bills on time and always pay back debt then you probably have a pretty good credit rating. By financing your home improvement projects with an unsecure loan of some type you will be paying the loan off without any sort of collateral offered to the bank. A credit card, even a credit card from a home improvement store used to obtain a zero percent interest home improvement loan, is usually considered an unsecure loan.

Secure loans are loans in which the bank or lending institution have some sort of collateral or item which they technically “own” until you pay it off. When you buy a house with a mortgage the bank technically owns your home until you’ve paid off the mortgage amount. Your house is the collateral. If you default on your loan then the bank can take your house and sell it in an effort to regain some of the money they lent you.

When you’re exploring home improvement financing options you’re almost always going to end up with some sort of secured loan because most of the time the equity or “extra value” in your house is used as collateral for a loan to improve it.

Secured home improvement loans such as home equity loans and home equity lines of credit generally have a lower interest rate, which makes paying them off easier over the long run. Depending on your tax situation you may even be able to deduct the interest you pay on the secured home improvement loan from your yearly income tax returns.

No matter what type of home improvement financing you consider remember that you do have to pay the money back and you will be paying interest on the money owed. Plan ahead and make sure you can really afford the monthly payments before you go foward with your home improvement project. Many home improvement plans are scaled back when people finally begin to consider the true cost of home improvement financing.

If your home improvement project is a rather large one such as remodeling a kitchen, adding a bathroom or building an addition on your house then a secured loan that offers up your home’s equity as collateral is the best form of home improvement financing.

Tennessee’s population is exploding with more people moving into the state each year, raising home values and changing the financial housing map of the Volunteer State. Many residents of Tennessee have found themselves unable to move to new homes in the state because they can’t afford the rising mortgage costs brought on by the increased demand in housing and Tennessee real estate, so more and more Tennessee residents are improving their existing homes by taking out Tennessee home improvement loans and financing their home improvement costs.

When a Tennessee homeowner wants to improve his home but doesn’t have the money readily available he or she usually turns to a home improvement financing method of some sort, whether it be a home equity loan, a home equity line of credit, or even a zero interest home improvement loan. They could even turn to the First Tennessee bank for home improvement and home loans of various types.

Tennessee is the 18th largest economy in the nation, which means there are lots of people working on their homes and lots of industries and jobs available to keep those Tennessee home improvement loans being paid off. However, moving to a new home is often much more expensive than improving the one you already live in, so more and more Tennessee homeowners are fixing up their current home by adding custom built additions, remodeling kitchens and bathrooms and even attempting some of their own home improvement projects.

As the cost of home improvement projects rise, though, more Tennessee people are turning to home improvement financing and applying for Tennessee home improvement loans through various means. The methods of applying for a home improvement loan are basically the same if you live in East Tennessee, Middle Tennessee or even West Tennessee. While residents in the larger Tennessee cities like Knoxville, Nashville, Chattanooga, Memphis and Oak Ridge might have higher mortgages or higher property values, even the rural Tennessee state residents will have some home equity to use as collateral for home improvement financing options.

The bottom line is that homeowners living in Tennessee have a lot of different options when it comes to pay for improvements to their homes. Whether they’re hiring Tennessee contractors or looking to add on to their current home with the help of a Tennessee custom builder, they’re going to need a Tennessee home improvement loan to finance their home improvement project.

Construction sites are some of the most dangerous places to work and if you’ve been injured while working in the Copper State then you definitely need to consult with a professional Arizona construction accident attorney. Whether you’ve been hit by falling debris or been caught in a piece of equipment or have been exposed to unsafe conditions such as airborne asbestos, toxins in dust, mold, lead paint or other dangerous situations that have caused you harm, your best bet is to speak with a personal injury lawyer who specializes in construction accidents.

The Federal Bureau of Labor Statistics reports that construction sites are the second most dangerous work site to be employed at which means that Arizona, as one of the fastest growing new construction areas in the country, also has a very high rate of worker accidents and injuries. It doesn’t matter if you’re a contractor, working directly for a company or have simply been hired by a subcontractor, you almost definitely need to speak to an Arizona construction accident attorney if you’ve been injured on the job in any way.

A construction accident attorney in Arizona can be an invaluable resource when going to court because a lawyer will most likely have intimate legal knowledge and experience with construction accident cases that you may not possess. Construction accident lawyers often know how insurance companies and liability rules work, they will know about how how to gather evidence, how to talk with defendants, how to find “hidden” defendants and the best way to move forward with your construction accident suit or legal proceeding. In Arizona is not suggested that you try to argue your injury case without the help of a qualified and experiences construction accident attorney.

In addition to navigating the various legal channels, Arizona construction accident attorneys will have the knowledge needed to deal with the complex forms and regulations imposed by organizations such as the Environmental Protection Agency (EPA) and Occupational Safety and Health Administration (OSHA) as well as the various Arizona law associations and construction organizations.

Even if you’ve financed your home improvement project in order to pay a contractor and that contractor is injured in your home, you may be liable. Your home owner’s insurance may cover the medical expenses or legal fees, but if you’re in Arizona it would be best to speak with a construction accident attorney to be sure.

The bottom line is that no matter where you are working, whether it be Flaggstaff, Scottsdale, Phoenix or Tempe Arizona, construction accidents are no joke and you need to speak to an attorney. You don’t want to risk losing wages, losing time at work or even losing your livelihood from a construction accident. Play it safe and act at the sign of an injury or disability brought on by your working environment. If you have any doubts about how you’re feeling or if you’ve been injured on the job then you definitely want to contact an experiences Arizona construction accident attorney right away.

Most forms of home improvement financing consist of some sort of home loan which requires you to pay back the loan amount as well as a certain amount of interest. If your home improvement project needed $5,000 worth of financing you may have to pay it back over a year and would actually end up paying back $5,500 or more to the bank or home improvement lending institution.

That’s how a home improvement finance company makes money: it charges you interest!

However, there’s a way you can often get home improvement financing with no interest at for a limited time as long as your current credit rating is pretty good. The secret is to use a credit card offered by Lowe’s or The Home Depot or some other large hardware chain..

Large hardware stores want you to buy their products for your home improvement projects so they’re willing to offer you a break on home improvement financing that you might not otherwise get from a loan company or bank.

Many times they will offer you a line of credit with absolutely no interest charged for the first year that the loan is open. The key to this is that you pretty much have to buy everything at once and if you’re going to purchase any home improvement services then you’ll have to finance them through the hardware store’s credit card. This means you may not get the absolutely best deal on some contractor services but you may still save money with the no interest home improvement financing.

If you choose to finance your home improvement project this way then remember that you’ll still have to pay back the loan and you’ll only have a certain amount of time to do it before interest starts being charged. Sometimes the interest for home improvement financing through a store credit card can be high if you’re not careful.

Overall using a hardware store credit card to get a zero percent interest home improvement loan is a good way to finance your home improvement project as long as you have a plan to pay it off within the alloted time.

The one factor that usually prevents people from improving their home is money. Having the money to commit to a home improvement project, whether done by yourself or someone else, is almost always a factor in making your home more livable. But with a little creativity you can often come up with the money you need to finance that home improvement project so that your current house can become a dream home.

Here are four methods you can use to finance that home improvement project you just can’t live without.

Home Equity Line of Credit - Sometimes called a HELOC (Home Equity Line of Credit) this is basically a loan from the bank where you use part of your home’s value as collateral. For example, if you owe your bank $100,000 on your mortgage, but your home is really worth $175,000 then you could conceivably get a line of credit from the bank for that $75,000 in equity or “extra value” your home has. You may or may not actually get a check from the bank. Sometimes you just get a “credit amount” to use for whatever you want. HELOC loans typically allow you to write checks or even use a check card to pay people, and the amount is automatically paid out of your value. So if you have your bathroom remodelled but you’re not sure what the total cost of the project will be, this might be a good option. Let’s say you spend $10,000 on your bathroom. You may still have $65,000 in “credit” which you can spend or not. Remember: you do have to pay it all back There are lots of different rate and payback options available with Home Equity Lines of Credit.

Home Equity Loan - A home equity loan is similar to a Home Equity Line of Credit, but it’s usually for a fixed amount. In this case you may just get a straight check that you have to begin paying back on a regular schedule. These are usually better if you know exactly how much you need to spend and you don’t want to spend any more. You’ll want to talk to a banker about both the HELOC and Home Equity Loan to find out which is better for you. I like to go through the same company as my mortgage just to make things easier. You can sometimes save some filing and appraisal fees this way as well.

Home Store Financing Credit Cards Deals - You probably won’t find this at your local hardware store, but some of the large home improvement stores offer their own financing and sometimes you can get a pretty good deal depending upon the size of your project.  Lowe’s offers three kinds of credit cards and the Home Depot has similar credit card options.  They often run specials where you can get a year of free or no interest financing for your home improvement project provided you spend a certain amount of money. This option is good for those smaller projects where you don’t have the money readily available but spacing the payments over 12 months wouldn’t be all the painful. My wife and I bought several major appliances and replaced several exterior doors with a financing deal when we first moved into our new home. We needed the doors and the appliances immediately, but we didn’t want to spend all our money right away, so we got a zero interest plan for the first year. It was essentially just a credit card. We paid off the loan over the year in small increments and never paid a dime in interest.

Sell Left Over Materials from Your Home Improvement Project - This is a little unconventional and it’s doubtful that you’ll end up getting nearly enough money to pay for your entire home project, but it could bring in a few bucks. If you’re doing any sort of renovation or removing any older materials from your home remember that though you may not want the items, they could still have value. This means that you may want to reconsider knocking out those 20 year old kitchen cabinets with a sledgehammer if you know someone who is looking for cabinet just like the ones you’re trying to replace. I’ve seen people sell old cabinets, wood from floors, old landscaping stones, ripped out bushed and trees and even old roofing shingles. Not only are you making some extra money to pay for your project, but you’re also recycling products and putting a little less trash in the local landfill!

Sell That Junk in your Basement, Attic and Closets - This is another method for financing a home improvement project that most people don’t initially think about. This is obviously dependent on the size of your home improvement project and the value of your junk! There was actually a short-lived HGTV show which featured an antique appraiser who came into people’s homes, appraised their “junk” and then they took the items to auction in hopes of raising enough money to pay for a home renovation or improvement project. There are lots of places to sell your items, from eBay to local flea markets to having a yard sale on your lawn. We moved three years ago and my wife and I are still going through old boxes and putting up items for sale. We’ve made several thousand dollars over the last couple years and we didn’t have any valuable antiques or pieces of furniture. We’re just slowly selling things for $10 - $20 at a time that we’ve accumulated over the years!

As always, don’t get caught up in the project and lose track of what you can and cannot afford. Just because you’ve always wanted a gold plated bathtub with floor to ceiling marble walls doesn’t necessarily mean you can afford it. Budgets matter and if you aren’t careful you can easily spend yourself right out of that dream home before you have a chance to enjoy it. Be smart and if you have home improvement financing questions you should really talk with a banker or financial consultant.

We’ll cover more of these topics in details. Check out some of the resources listed at this site for more information about how you can finance your home improvement project.