We all know that renovations are necessary. Just like any other thing your home is subject to wear with the passage of time. Renovations can be really taxing in terms of time, energy and money for the homeowners. If you think you don’t have enough funds to renovate your home you are not alone in the struggle. More than 50% of the homeowners find it difficult to gather funds for the necessary renovations of their home. VA renovation loan has the solution to this problem. We will tell you five different ways by which you can easily fund your home renovation.
1. Home equity loan
This is one of the most common ways in which people fund their home renovations. If you are the owner and there is no mortgage on the house you will be able to get 80% of the money as a loan for the current value of your house. One of the problems with home equity loans in that they do not consider the value that will be added to the house after the renovation. So, this amount is usually less than the funds that you will need to renovate the home.
2. Homeowner mortgage
This is a very good option if you are considering a major overhaul of your house. By taking homeowner mortgage you will be able to get almost 90% of the value of your house as a loan. This is ideal for long-term and ongoing renovations. You can also take advantage of the mortgage rates if you choose this option as they are lower than a credit card and personal loan rates.
3. Construction loan
This is also a good option if you are planning on a major renovation of your house. This is similar to a home equity loan but the main difference between the two is that the company giving you loan will consider the value of your home after the complete renovation is done. However, the whole amount of the loan will not be given to you in one go. Instead, you will receive the loan in different stages over a period of time.
4. The line of credit
The line of credit is also an amazing option if the renovation in your home is the ongoing or long term. With a line of credit loan, you can have a revolving credit line and get the required amount of cash up to the limit that is specified during the contract. The best thing about this type of loan is that the interest is only paid on the amount that you have borrowed. You can borrow the money that is unused as required without going through the whole procedure of reapplying for the loan. However, need to be careful with this type of loan because most of the people end up lending more than they can repay.
5. Personal loan
Personal loans are perfect if the renovation that you are planning is small. You don’t need to go through the long processes and paperwork of the above-mentioned options if the renovation is small. Personal loans usually cover up to the amount of $30,000. Although the interest rates on personal loans are always higher than that on home equity or line of credit, it is still a good option to consider.
As evident from the information mentioned above, renovating your home and finding the funds to do so isn’t as complicated as you might have thought. For the majority, if not all of our visitors, at least one of the aforementioned tip would be applicable for realizing the long-held dream of renovating the house. Now that you are familiar with the ways to fund your home renovation, it is time to look through everything that needs to be renovated and have a few ideas in your mind that you would like to implement. With funds at your disposal, you can actually experiment around with renovating your house in terms of design or structure as well. So what are you waiting for? Opt for one of the aforementioned methods and have your home renovated now.