5 Reasons Why Homeowners Should Consider Financing for Home Improvement Projects

Nowadays, consumers are increasingly taking advantage of financing to buy small and expensive items. Homeowners should really consider offering this option for home improvement projects, as there are many benefits to doing so. Here are five reasons why homeowners may want financing and why it can be a great option. One of the main reasons why homeowners should consider financing is because they can keep the difference between their old mortgage and the new loan. This extra money can then be used to make improvements to their home.

Home Improvement Loans

Home improvement loans are often best for small to medium-sized projects in your home, such as bathroom remodeling or window replacement. Whether you're getting ready to sell your house or just want to freshen up for a new season, a housing project is a big task.

VA Cash-Out Refinance Loans

Veterans Affairs also offers cash-out refinance loans, which allow you to refinance a conventional mortgage loan and take cash out of the capital of your home. No down payment is required; the loan can finance up to 100% of the expected value of the home after improvements are made.

Store Credit Cards

If you're planning to use a credit card for home improvement projects, it's worth looking for credit cards issued at stores in places like IKEA or Lowes. This is a good home repair loan option if you've recently purchased your home and need to make improvements.

VA Home Renovation Loans

Eligible VA borrowers can purchase a home and finance the cost of its repair, up to 100% of the expected value of the home after the renovation.

Credit Cards for Small Improvements

If you are going to make small improvements to your home, such as upgrading the bathroom vanity or installing a new closet system, using your credit card could be one of the best financing options for home improvements. On average, homeowners get 74 cents back for every dollar they spend on home improvements when it's time to sell. Financing can be a great way to make sure that you get the most out of your investment.