Improving your home for a better life for you and your family isn’t that simple. A lot of planning and consideration must be taken into account. When will you be building it? Are you going to renovate the whole house or just a part of it? And of course, how will you be paying for it? You see, the expenses of building home improvements might shock you once you start doing research. Thus, it is better for you to take a step back and carefully consider the monetary consequences of the project you are going to start. If you don’t have enough savings in your bank account, then you might want to consider getting a loan.
Now, if you are really set on improving your house, for instance, your roof, then allow us to share 4 tips on getting a loan for a new roof.
- Government rebates and grants
The Federal Housing Administration, the agency that oversees and handles the housing industry in the USA offers Title I loans for homeowners that have good credit standing and has a limited home equity. If you can qualify for the Title I loan, the Federal Housing Administration or FHA or will be your guarantor as you get a new loan from local banks or partner credit institutions. The FHA will be using their funds to support you in your loan and prevent possible loss. It is like a safety net in case things go wrong. However, take note that you can only qualify for the Title I loan if you have a good overall credit standing.
There are also rebates and incentives that the government can offer if you are planning on building an eco-friendly roof. With the environmental crisis gaining attention worldwide, the government has surely implemented programs that can help citizens contribute to saving the environment while also earning incentives and rebates. You can check out their program at the Database of State Incentives for Renewable Energy.
- New no-interest credit cards
Again, if you have a good credit standing, then you can also finance your new roof by applying in new no-interest credit cards. These sort of scheme is best for owners who have the capacity to pay the monthly dues on time. Usually, for new no-interest cards, the duration of the no-interest loan will be 1 year, so if you have a good management with your finances, then no-interest credit cards can also be a good option.
- HELOC or Home Equity Line of Credit
Home equity line of credit is like a secondary mortgage. It uses your home as the collateral for your loan. HELOC loans are best if you are going to implement multiple projects over time. You can pay the loan for extended periods of time and you won’t also be getting a lump-sum of money which can make you overspend, meaning you can apply for partial loans that will just be enough for your current project.
- Loans from credit institutions
In the past, there were only a few banks and credit institutions that accept loans for home improvement. Today, however, with the stiff competition in the industry, a lot of credit companies have offered loans with low-interest rates plus other incentives. For instance, a loan from Excel Financial will not just help you finance your new roof, they can also help you improve and rebuild your credit standing.