3 Options for Financing Home Renovations

Renovations can cost several thousands of dollars. In the end, it’s worth it because it adds to your property’s value and your quality of life. But if you can’t pay all the costs out of pocket, there are some options to consider.

Government Aide

If part of your renovation is installing a ramp or another addition to make your home more accessible to a disabled or elderly family member, you may qualify for an FHA Title I loan from the government. Other renovations that fix safety concerns or improve your home’s energy efficiency are also applicable expenses.

A single-family home is eligible for $25,000 and multifamily homes are eligible for $12,000 per family (maxing out at $60,000). The loan length for both can be up to 20 years.

If you have a manufactured home, you are eligible for up to $25,090 with the maximum loan length being 15 years. If there’s no foundation, the size is $7,500 with a maximum loan length of 12 years.

Cash-out Refinancing

This is, essentially, applying for a bigger mortgage. Keep in mind that you’ll have to pay a closing cost on your old mortgage and will lose what ground you made paying it off, but by “cashing out” most of your home equity you will have access to funds that may cover all of your home improvement costs.

Since the loans are bigger there tends to be more interest, and your credit score may determine whether or not this is even an option you’re eligible for.

Quick Cash Loans

If you have poor credit or an immediate need that must be fixed as soon as possible, these might be your best option. There are fewer stipulations on what the money can be used for, so if you have a variety of expenses to go along with your home repairs, such as food costs and vehicle repairs, quick cash loans can help you cover all your bases.

These tend to be short-term loans, meaning they are expected to be repaid over weeks or months rather than years. They also tend to be smaller compared to other loans. For instance, the maximum that MaxLend loans is $3000.

MaxLend reviews and their website show that they are rather accessible. All they ask for before approving a loan is proof you’re a legal adult, that you have a verifiable source of income that shows you can make the required payments, have a long-term checking account and aren’t filing for bankruptcy.

Credit Cards

If you have good credit you may be able to get a card with a limit of up to tens of thousands of dollars. These often have reward programs that can give you discounts on products or even give you cash that can be put into paying off your bill.

The downside is that if you don’t pay off your purchases by the end of the month you will be hit with high interest. But with most credit cards the monthly payment tends to be low, so even if you have a financially lean month you’ll probably still be able to meet the minimum requirement.

Don’t throw in the towel before you start. There is funding available, you just have to know where to look for it.