3 Ways To Finance A Remodel
Presented by Murray Lampert Design, Build, Remodel
by Gregg Cantor Resident Expert, Approved Home Pros President, Murray Lampert Design, Build, Remodel
If you are considering financing home improvements there are many options:
1. HELOC Loans
Known as Home Equity Lines of Credit have been around for a long time. With equity, HELOCs are the most streamline loans available. Not only is the documentation easy, cost is low. I recommend these for smaller projects since you can pay the balance off early maintaining your interest rate.
2. FHA 203K Loans
When purchasing a home FHA 203K Loans maybe a good fit because money can be set aside for home improvements and you have one mortgage payment. The downside is fees can be very high and there is a lot of paperwork.
3. Home Renovation Loans
For major home improvements or total rebuilds construction home renovation loans are your best choice. You can finance a construction or remodeling and then roll it into one first mortgage. In many cases banks will lend on future value as well. There really is no downside to the construction loans as long as you have a bank approved design-build contractor.