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How to Finance a Home Renovation

The job of a homeowner never feels like it’s fully over. No matter how much work you put into your home, something else always seems to come up that quickly requires your attention. There’s no doubt that a large amount of time and work goes into the basics of taking care of a house. You have to put in this work just for upkeep, but you’ll have to do even more to turn it into a house you love. Every house requires repairs and cosmetic renovations from time to time, but that doesn’t mean it’s easy. 

Renovations can always cause stress when parts of your home are being worked on or if you’re taking on the hard work yourself. They can also cause a significant amount of financial stress. Most renovation projects come at a huge cost, so paying for it out of pocket isn’t usually an option. 

Here are a few ways you can finance your next home renovation. 

Credit Cards

Your mind might go straight to credit cards for anything you aren’t able to pay for right away. Most of us rely on our credit cards to cover the costs of everything we need frequently. While this can be a huge help, it can also cause you some problems down the road. Paying for a home renovation with a credit card can lead to extremely high interest rates on top of the already expensive cost of the renovation. If you have a major renovation, a credit card is likely not going to be a good choice to pay for it. However, this can still be an option if you have smaller home improvement projects, like new paint or minor repairs. 

Homeowner Loans 

The way many people can finance their home renovations is through homeowner loans. These loans are similar to any other type of loan you can apply for, but are meant specifically for home renovations and repairs. This gives you easy access to the funds you need to pay for your renovations and gives you the chance to pay it off over time later. Homeowner loans can also be incredibly flexible, you can do what you want to your home, rather than giving control of your renovations to your lender. 

Refinance Your Mortgage 

To afford a large purchase, many people decide to refinance their mortgage. You’ll still have to pay off the new mortgage, but you won’t have to worry about taking on an additional loan. It’s common to refinance your mortgage for many reasons, but you should only do it under certain circumstances. Unless you’re refinancing for a lower interest rate, you should try to avoid refinancing. If you aren’t smart about refinancing, you could end up paying significantly more for your mortgage than you would have.

Apply for a Government Grant

Some might be able to qualify for a government grant to cover the cost of their renovations. A grant can be much more beneficial than a loan because you won’t have to pay back the money that you’re given. Getting money to complete your home repairs without having to worry about paying it back might seem like the option everyone should do. However, few people will be eligible to receive a grant for their home improvement project. Government grants can be an option for the elderly or people with disabilities to make their homes safer, for people looking to make their homes more environmentally-friendly, and more. With a grant, you might also have more limitations regarding what types of renovations you’ll be able to do. 

Homeowner Loans Made Easy

A homeowner loan is the best option for most people who are looking to take on home renovations. This gives homeowners the funding and freedom to improve their homes how they want. While this is often the best option, many people might be wary of it because of how difficult applying for a loan can sometimes be. At Homeowner Funding, we want to see homeowners get the funding they need to create a dream home, which is why we work hard to make the process as easy as it can be. 

Contact us to learn more about how Homeowner Funding can help you finance your home renovation. 

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Joe D.

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