You have the vision, now how do you pay for it? Whether it’s time to expand and update your long time home or you just purchased a fixer-upper, there are many options for funding home improvement projects.
Home equity loans or unsecured consumer loans can be easier for homeowners and lenders to manage than a home improvement loan because they don’t require inspections and the money can be spent as needed. Some homeowners find refinancing their mortgage or taking out cash is the best option, but that does require having some equity in the home, as well as a steady income and good credit score. Another option is a second mortgage, which typically allows you to borrow up to eighty percent of the appraised value of your home minus the balance due on your first mortgage. There are also many government run home improvement programs you may be eligible for.
For help deciding which option best fits your financial needs, talk to your lender and do some research on available options. A recent article in This Old House Magazine speaks more in depth on options for financing home improvements. Your real estate agent is also a great resource!