How to Find Financing for Your Home Remodel Venture

Written by  //  March 7, 2020  //  Home Remodeling  //  Comments Off on How to Find Financing for Your Home Remodel Venture

find financing

There are plenty of good reasons to choose to remodel a home. You might be looking to get a little bit of extra value out of your current house before you sell, you might be trying to flip a property, or you might even be looking for a way to make your house feel a little more updated. Regardless of your reasoning, getting the money for a remodel can be difficult. Below are a few of the ways you can finance your home remodel venture.

Home Equity Loan

One way you can finance your home remodel is through a home equity loan. A home equity loan is a great way to put your equity in your home to work. Equity is the value of the home minus all the liens on the property. Ideal for those trying to get major renovations done on a home in which they already live, a home equity loan can be a good way to get tens of thousands of dollars in a relatively short amount of time.

Renovation Loans

A renovation loan is another good choice for those who are willing to do a little paperwork. There are plenty of programs that either loan money to people who are buying a home or that provide funds to those who need to fix up a property. These are less commonly available to those who are flipping homes, but they can still be very useful. Look into a renovation loan if you are trying to renovate a home you are buying or fixing up for your own use.

Credit Cards

Yes, you can use a credit card for some types of remodeling expenses. If you have a high enough limit and you’re willing to take a hit to your credit score, your own credit card might be a good choice. This is ideal for those renovations that have a relatively low budget but that can be completed in a short amount of time. You can even get a bit of money back on this type of renovation if you use a card that has any kind of cash-back program. You will want to do your research and make sure you can pay off this sort of loan in a timely fashion though.

Hard Money Loan

If you’re in the business of flipping homes, this type of hard money loan might be a very useful path to pursue. This type of loan is usually known as a fix and flip loan, with the primary funding provided by an investor so that you can quickly renovate the property before the sale. Though it can be tough to find an investor if you are a novice, this type of loan can be very beneficial for those who already have a relationship with someone who is able to foot the bill. Look into reputable fix and flip loan providers if you are trying to buy and sell a property quickly.

Don’t be afraid to seek funding for your renovation. Whether you choose a hard money loan or you seek out a government program, the money is there. Once you have the money in hand, you can start on the hard work of remodeling your property.

image credit: twenty20.com

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