Paying for a home improvement project can be enormously expensive, not to mention unnecessarily complicated.
You have a variety of options before you to pay for a home improvement project: you can save up the money and pay for it out of pocket (which would take time), you could borrow the mine through a line of credit or a home equity loan, you could pay for it using a credit card, or you could take out a personal loan (such as a roofing loan if you want to repair or replace your roof).
Out of these options, many people go with a personal loan because it is arguably the quickest option to pay for your home improvement costs and so you can begin renovating right away.
On average, the amount of a personal loan will be anywhere from one thousand all the way up to one hundred thousand dollars, though it varies significantly by the lender. Your interest rate will also be dependent n your credit history, your credit score, and your current debt-to-income ratio.
Here are the top places to get a personal home improvement loan:
Your first option for getting a personal home improvement loan will be a credit union. In fact, this is arguably the best place for you to begin your search because a credit union will typically offer a lower interest rate than other sources such as online lenders, and they will do everything they can to make your loan as affordable as possible so they can get your business.
Your next option will be online lenders. Online lenders will look at more factors than credit unions typically more. While credit unions and online lenders alike will look at your credit score and history, online lenders may also request to look into your income, your profession, and your education.
Online lenders might offer you a larger loan than credit unions will, but at the same time, they will also typically charge you a higher interest rate.
Finally, you can also turn to certain government programs from the Federal Housing Administration, which could help to pay for a home improvement or renovation project.
There are two specific programs that the Federal Housing Administration currently offers: Energy Efficient Mortgages and Title I Loans.
For Title I, the government will authorize lenders in each state to make a home renovation loan up to twenty five thousand dollars, with a higher interest rate than a typical loan.
Meanwhile, the Energy Efficient Mortgage program allows homeowners to finance part of their home renovation projects so like as the project will result in the home being more energy efficient (such as insulating the walls or installing solar panels on the roof).
Selecting A Personal Home Improvement Loan
If you were wondering about the best places for you to secure a home improvement loan, the options that we have listed out in this article will be the best places for you to begin searching.