“A house is made of walls and beams; a home is built with love and dreams.”
Now converting your home into your dream mansion is very easy. All you need is lots of love, little creativity and the required sum of money to finance your home improvement project. And if you are worried about how to arrange for the finance, then one home improvement loan would do just fine.
Home improvement loans are just about ideal to meet the various needs that a person faces while improving the look and feel of his home. The home improvement can be of varied nature. Probably you want to get something repaired, build an extension to your house, opt for some cosmetic changes or simply change the interior decoration of your home. There are different financial expenses involved in different kinds of home improvement. Plus, if you want to employ the expert advice of an interior decorator, that you be an additional cost.
Lenders in UK have different plans available under the category of home improvement loans. Different plans are designed to suit the requirement of any kind of home improvement project. These loans are also made keeping into consideration the varied needs and financial background of different kinds of borrowers.
You can get your home improvement loan easily by searching online. This saves you the trouble of physical exertion and also gets you a good loan plan within minutes. Plus, you can compare loans and offers in order to find a suitable deal from among a wider range of options.
There are both secured and unsecured home improvement loans. The basic difference is that in secured home improvement loans, you need to place a security with the lender, which is usually your home.
But if you do not own a home, or do not want to risk it, you can always go for an unsecured loan. Although the rates are higher in this kind of loan when compared to secured loans, this is risk-free. Also, you can avail unsecured loan if you need to borrow only a small sum of money.
Braden
http://www.articlesbase.com/loans-articles/pot-full-of-money-with-home-improvement-loans-124642.html
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Loan for home improvement with no equity?
I’m looking to build a second floor onto my home.
We just bought the home in November/December of 2006 and have only made minor improvements and a full kitchen remodel. We got a great interest rate on our loan and don’t want to refinance. Then again we wouldn’t have nearly enough equity to finance the addition if we DID refinance.
What options do I have for a loan? I’m looking for a loan of $75,000 – $100,000 for a full second floor addition (3 beds and a bath) and a single-stall detached garage. The improvements should be well worth the money; not to mention that in making the improvements it would allow me to stay in the home for years rather than selling next year (starting a family…).
I did a quick search on Zillow. The house is currently worth about $10,000 more than we owe, and the improvements would boost the value to well over the loan amount. (Yes, I know that Z is not the most accurate.) I live in northeastern Massachusetts, if that matters.
Any ideas?
Few small points:
My home is the smallest in a wonderful family-oriented neighborhood. My one-bedroom home is nestled into all of the three-plus homes, and looks like a dwarf! 😉
My hope is actually to NOT sell this house. My husband and I bought it off a couple that HAD to sell as she was pregnant. Now, looking to start our own family, we need a bigger place ourselves. My thoughts on what the house WILL (granted, might) be worth is only the idea that I would have the equity when the process is complete.
Also, I have a "real time" quote from a highly respected contractor who happens to be a family friend. We will probably get a good deal from him, but I’m not banking on that.
Home values are dropping all the time. You’re lucky if your home really is valued at $10K more than you owe, but that might not be the case tomorrow. In many states lenders are calling in equity lines of credit. This is a very fearsome indicator of things to come.
This is not the time to think about taking out a large loan, even if you could find someone to give you the money (which you almost certainly can’t without much if any equity). So many great houses are going unsold across the country, so many houses are in foreclosure, that to invest any large sum in home improvement right now would be ill-advised. IMO.
References :
Maybe. See if you can find a bank that does a value-added home improvement loan. Bank of America used to do them, but I don’t know if they still do.
You must use a real contractor for the improvements. You would get a signed contract from the contractor and submit that to the loan processor. They would add the cost of the improvements to the value of the home and make the loan based on that new value.
This does not mean you’ve actually added that value to your home. Home improvements do not add dollar for dollar value. Make your improvements for your own use and benefit, not thinking your increasing the value. Also be sure you don’t over-improve for the neighborhood.
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It sounds to me like you purchased the wrong home to begin with. A quick search on zillow stating that you are currently worth 10K more than you paid is mute. When you sell your home you will have to pay an average 5.5% commission to sell it, typically in today’s market you will also have to pay closing costs or a portion of them for your buyer, and you will have to pay the title fees. That 10K dissipates quite quickly. Many people try to get into a home and then make it too nice for the neighborhood, and think it will be worth so much more. The neighborhood dictates what you home is worth, rarely do extreme improvements such as what you are suggesting. I recommend selling your home because you have done the minor improvements necessary, and taking advantage of the weak market and on your next purchase, actually buying a home that will coincide with your needs for at least 10 years. Now is the time to buy, not to sell…so you may take a little hit on the selling side, but make out smellin’ like roses on your new larger home purchase.
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You can try for an FHA Title 1 home improvement loan. It won’t get you 75K, but it will get you up to $25K, and that is a start. If you don’t have the equity in the home, it is going to be difficult to obtain a loan now based on future value because of all the turmoil in the credit industry. This was one of the types of loans that investors lost a lot of money on.
For the FHA loan, just do a search for it. Type "FHA Title 1 loan"
Good luck.
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You are looking for a niche product. This is a specialty of mine, but not in Mass. Ask the contractors as you interview them who they use for financing. The better ones will have a lender relationship set up for just this case. Two years ago this would have been easy. Today, most high LTV 2nd mortgage lenders are out of the market. It’s possible GECC or Key Bank still loans in Mass. You’ll have to hunt around for financing.
Good luck. You are taking on a big project – I hope your family is up to the task!
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