Where to Find Funding for Your Home Improvement Projects

by Editor on June 11, 2013

Funding

As a responsible homeowner, you are probably aware of the benefits of repairing and maintaining your property, not to mention implementing upgrades. Not only is your house the place you call home, meaning that you want to keep it in ship shape and even improve the functionality for your own use while you live there, but it also represents one of the largest assets that practically any individual will ever own. And although it has inherent value simply because it is a tangible asset, you certainly want it to be worth more when you sell it than it was when you bought it. You want this long-term investment to pay off. However, completing home improvements, from minor upgrades to major renovations, can be an extremely pricy process, and many homeowners simply don’t have the money sitting around. For this reason you might be looking for ways to fund your home improvement projects. Here are a few you’ll definitely want to consider.

The most obvious place to start if you don’t have the cash on hand is with a bank loan, and there are a couple of ways you can secure this. The most common method of getting the funds needed for home upgrades is through a home equity line, whereby lenders (i.e. banks) use the equity you’ve built up in your property as a sort of collateral for the loan. The more you’ve managed to pay down your mortgage by the time you decide to seek a home equity line, the better chance you have to secure the funds you need to undertake home improvements, although proving an increase in property value since the time of purchase or providing data about the value of other homes in your neighborhood that have undergone similar renovations could help to make a favorable impression on lenders.

But what if you simply don’t qualify for this type of loan? Luckily there are other options. For one thing, you may want to apply for a personal loan. You likely won’t get as much money as a home equity line could provide, and you might have to put up another form of collateral (art, jewelry, or other valuables, for example), but if you’re only interested in a small-scale project, this could be a viable and even preferable option to taking on a home equity line. You might even approach family members and friends for small loans as a last resort (although you should certainly create some kind of contract for repayment as a form of protection for both parties, not to mention a way to ensure that all are comfortable with the arrangement). Or if you don’t want to bother with lenders in the first place, you might think about how you can get the funding you need without a loan.

You could start by simply setting aside money from every paycheck until you have the budget you need to complete a specific home improvement project. Or you might host a garage sale to clear out space and bring in the extra dough needed to get your remodel underway. You could even rent out extra rooms in your home to college students as a way to earn a passive income that will pay for your home improvements. The point is that there are many options for obtaining the funds to start your home upgrades. It takes little more than a click here and a click there in the online arena to find dozens of ways to improve your property, but scraping together the money to get these projects done is another matter. However, a frugal attitude and a bit of planning can go a long way towards ensuring that the upgrades you crave are within your reach.

photo by: HowardLake

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