There are many reasons why you may be looking for ways and means of funding the exciting home renovation that you’ve likely been dreaming about for years.
Regardless of your current financial circumstances and whether you’re looking for a quick source of extra money or not, continue reading to discover how to fund your home renovation.
Loans from the Government
First and foremost, the US department of HUD (Housing and Urban Development) provides a program which provides people who are looking to renovate a property with an FHA 203(k) loan.
Alternatively, you could consider the HomeStyle Renovation Mortgage, provided by the US Federal National Mortgage Association which will not only provide you with enough capital to complete the renovations you’re planning, but to also purchase the property in the first place.
Bide Your Time
Even though this either may not be an option, or else you’re not particularly fond of waiting, biding your time and steadily building your savings is perhaps the best option of them all.
This way, even though it’s unlikely that you’ll be able to afford the entirety of the cost of the renovation, it will mean that in a few months or even in a years’ time, you’ll be taking out a considerably lower amount of money as a loan, and therefore paying less interest.
For those looking for a way of borrowing money for home renovations in a way that’s relatively low risk, then a personal loan would be the best option, with one of the main reasons for this being that lenders are unable to repossess your property should you miss any payments.
If, instead, you’re looking to apply for a mortgage, or indeed refinance your home, then established private lenders for mortgages are your best bet, especially if you’re looking at a high end and therefore more expensive property.
Your Credit Card
If you’re looking to make smaller and therefore, presumably less expensive repairs and upgrades, then another option is to look at using your credit card to pay for them.
It would be worth noting, however, that the only viable reason anyone should use their credit card for larger home renovation amounts is if they have an incredibly low interest rate, and fixed and a zero percent promotional APR for at least the first year.
Really, your credit card should be used only in an emergency, or for things such as improving a particularly low credit score or transferring your debts to a more affordable rate.
Refinance Your Home
Finally, as long as you’ve accrued a substantial amount of equity in your home, you could look into refinancing the property.
Essentially, a refinancing loan will mean that you’ll be able to pay off your old mortgage loan with the new one and have money left over for the renovations. An additional benefit of choosing to remortgage the property is that, providing the original interest rate was higher than your new rate of refinance, your monthly mortgage payments could also reduce.