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Best Home Improvement Loans of 2019: Repair, Remodeling, Rates, and More

  • contemporary bathroom
    checklist lying on the table
    jar with coins in it
    woman looking at green paint

  • Looking to remodel or repair your home, but don’t have enough money for it yet? Home improvement loans will help you out with that! And to make it easier for you, fill out our form and you can request financing for as much as $3,000! Simple, isn’t it? So, why don’t you try it out now?)

    You already have a list of what needs to be done to repair and remodel your home. You’ve already gotten in touch with a construction contractor, and you already agreed on the paint and flooring choices. But, what about your funding for the entire project?

    Are those cricket sounds we hear?

    If you intend to borrow money from the bank or from other lenders like a credit union for it, don’t worry, you’re not the only one.

    Not everyone will admit it but a lot of homeowners get their budget for their home improvement projects from loans, whether it is as simple as a bathroom remodel, renovation, home repairs, or a kitchen remodel, or as extensive as a home addition.

    If you’ve really wanted to make some changes to your home for the longest time, but your current state of finances is the only thing stopping you, this post is for you.

    How Do Home Improvement Loans Work?

    loan illustration

    We’re pretty sure you already got the gist of what home improvement loans are. But because homeowners have this notion that any home-related loans have sky-high interest rates, they don’t bother to get loans.

    They even ignore the ads of businesses like LightStream, SunTrust, and other lenders who offer home improvement loans, even if they badly need to renovate or repair their homes but can’t afford it yet.

    These homeowners would only do any construction and home improvement projects when they have enough money saved up for it. Unfortunately, this rarely happens, so they are stuck with doing a remodel or renovation of their home that only fits their budget and not what they really want.

    While a high interest rate is real, homeowners like you can already get quotes on how much you need to pay for every month for a specific period or terms you want. All you need to do is to go online and use the loan calculator feature of the different lenders or banks.

    Once you do so, you’ll realize that there are a lot of options for you to get loans without putting a huge dent on your budget. Not only that, the entire process is fairly straightforward. You just need to submit your requirements and meet their minimum qualifications.

    You can expect to get the whole amount of loan you got approved for in just a week or so. It’s now up to you when to start the work on your home.

    If you are considering a personal loan for home improvement, which is an unsecured loan that doesn’t require a collateral, it is perfect for you if:

    • You just acquired your home and wish to make changes to it
    • Have a credit score ranging from ‘good’ to ‘exceptional’ or ‘excellent’
    • Plan to eventually

    The more traditional home equity loan is also available, although you still need to use your home as a collateral for it.

    Not only do home improvement loans allow you to make staggered payments once approved, you can even make lump-sum payments for it to lessen the amount of interest you need to pay. It’s not as bad as most homeowners think.

    Say hello to the home of your dreams!

    Considerations in the Process

    One mistake people make when getting loans is they get tempted with the seemingly low interest rate, only to find out after they signed the contract that they will be charged with various fees later on. They didn’t bother making comparisons between lenders.

    It’s not just the interest rate you should concern yourself with. You also need to take note of the following:

    • Your reason for the loan – prioritize essential work, such as repairs on your bathroom or a kitchen remodel. From there, set a limit on how much you should borrow for it, focusing on the funding for only what’s important. A new hot tub can wait.
    • Consider your budget and future payments – if the lender offers to lend you $20,000 for your bathroom remodel that is estimated to cost roughly $2000 only, there’s no sense getting the entire loan offered to you. Stick to your guns. You may not be able to afford paying for the entire amount, including interest, in the future.
    • Compare lenders – don’t just go for the first bank you see. Always ask around and compare their interest rates, fees, payment terms, and other inclusions. Make sure to check out credit unions as well, as they often have better deals than banks.
    • Take note of your credit score and equity – if there is still a chance, try to improve your credit score and improve the value of your home before applying for a loan to increase your chances of being approved
    • Think long term – we’re not just talking about the payment terms. If you intend to sell off your home, are you aware that you are required to pay off all your loans before doing so? This is why you need to make sure that your home improvement loan, together with your mortgage, will not exceed your selling price.

    Don’t be swayed by the low rates that lenders offer. Always consider other factors as well before choosing the suitable loan and lender for you.

    Home Improvement Loan Options & Types: Best Way to Finance Home Improvements

    person signing agreement

    While many homeowners believe that getting a loan for their home improvement project should only be done if the needed funding is expected to cost thousands of dollars, this is not necessarily true nowadays. Even a small loan to make a minimal upgrade to your home can get approved. That is, as long as the requirements are met.

    And yes, getting a home improvement loan is also possible if you own a mobile home, although this can be more challenging than usual.

    These loans we refer to are the personal loan and the home equity loan, which are the most common ways for homeowners to borrow money to fund their home improvement projects.

    You might think that a personal loan and a home equity loan is the same. In essence, they are. After all, they would both possibly be the source of your much-needed funding and you’ll have to pay them off with interest. Their differences lie in the details. Read on to understand what makes them different from each other.

    Personal Loan

    If the idea of your home possibly being foreclosed in the future because of a loan that you were unable to pay for does not sit well with you, getting a personal loan for home improvement is a safer option for you.

    Take note that this type of loan is what some people just refer to as a ‘home improvement loan’, although this term is broad and covers various types of loan.

    This type of loan is the same as the personal bank loan you may be familiar with – it is also unsecured and the interest rate you get will depend on your credit standing. That is, a bad credit score can result in denial of the loan, limited loan options, and a higher interest rate.

    Here are the most important things you need to know about this type of loan:

    • Annual Percentage Rate, or APR – inclusive of interest and other fees. The interest rate will also vary, as some banks or lenders can offer variable-rate loans but most offer fixed rates. Your goal when it comes to the APR is to go for the lowest you can get.

    Since personal loans are unsecured, the interest rate is generally higher than that of a home equity loan. A possible way of bringing this rate down is if you have a great income and credit score.

    • Fees – origination or application fees and late fees are standard. Depending on the lender or bank, you may also be charged with prepayment fees, fees for returned payment, or even for checks.

    Even if you are offered the lowest interest rate by a bank or a credit union, always make sure to read the fine print and check the other fees they will be charging you. These fees usually result in a world of difference between various quotes offered to homeowners like you.

    Home Equity Loan

    Another type of loan you can apply for to fund your construction project is the home equity loan. This is the one that they dread the most, as non-payment can lead to foreclosure.

    Like personal loans, home equity loans will also depend on your income and credit standing. However, the amount you can get will primarily depend on the market value of your home, not the state of your finances. A bad credit standing or history will only make a small difference on your loan’s approval.

    The most important things you need to know about this type of loan are:

    • Annual Percentage Rate, or APR – like that of the personal loan, you should go for a loan with a low APR. This also consists of the interest rate, plus other fees that the bank or credit union may require.
    • Fees – home equity loans require more additional fees than that of personal loans. These normally include the $50 max origination or application fee, appraisal fee of up to $1000, title search and insurance fee reaching $1000, flood elevation certificate amounting to $350, $10 tax check, up to $100 worth of notary fees, and $50 credit report fee.

    Some lenders may also require you to pay for additional closing costs, late payment fees, fees for returned checks and the processing of checks, annual fee for maintenance, and additional costs for closing.

    A lender or bank may also provide the chance for you to get a lower interest rate if you make an upfront payment, referred to as points buying, and a point is equal to 1% of the total amount of the loan.

    Because of their similarities, you can avail of any of these two for your home upgrade – you just need to decide which one will be friendlier to your budget and more convenient for you.

    Improvement Loans vs. Home Equity Loans

    If you are planning to get some work done on your home, but you are still unsure which loan you should get, we’ll break it down for you even further in this section.

    Personal Loans

    Personal loans are advantageous to homeowners because of these two factors:

    • Small loan amounts are allowed – perfect for homeowners who are just after small home improvement jobs. You can even get a personal loan for home improvement amounting to just $1000.
    • No home equity required – you can still be qualified to get a loan, even if the equity of your home is unremarkable. This unsecured loan will just rely on your credit score.

    Unfortunately, personal loans also come with its own disadvantages:

    • Payment is required in a shorter timeframe – you need to finish paying for your entire loan, including the interest and other fees, in just two to seven years at most. Although this is good for small amounts, large personal loans mean you have to pay huge amounts every month.
    • Interest rates are generally higher – expect rates of a minimum of 2.5 percent to as high as a whopping 36 percent for personal loans.
    • Limited amount – most lenders will only grant up to $50,000 for personal loans. If you need a large amount but have no equity, you’re out of luck.

    If your home construction project is limited to a small remodel, repair, or a minor renovation, personal loans are your best bet.

    Home Equity Loans

    Like personal loans, a home equity loan also has its own set of advantages:

    • Loanable amount is higher – you can get loan amounts higher than $50,000. The actual amount is often 85% of your home’s value, minus the current remaining amount of your mortgage.
    • Deduction on tax – if the total of your first and second mortgage debts is not more than $750,000, your loan’s interest may qualify for tax deductions.
    • Interest rate is much lower – due to the presence of a collateral, the risk is lower on the part of the lender or bank. As a result, they can also offer lower interest rates. And since the rate is fixed, you will have to pay only a fixed amount every time.

    Home equity loans also have its own drawbacks:

    • Possible property foreclosure – if you don’t get to completely pay off your loan, you will have to say goodbye to your home. This is why homeowners are scared at the prospect of borrowing money.
    • Your liability is increased – if you choose to upgrade your home with the intention to sell it off and your source of funding for it is a home equity loan, there is no guarantee that you will get a profit from it, even if the market value of your home went up. And once it gets sold off, you are immediately required to pay off all your loans.
    • Lengthy period of payment – it is common to make payments on home equity loans from 5 to 30 years. This is practical only if you are getting large amounts, as small amounts will mean paying back higher interests.
    • Equity of your home is decreased – instead of an equity, it now becomes your second mortgage, only smaller. And the amount of loan you got will affect its value – the same amount will be deducted from your home’s current equity and will decrease its value.
    • Harder amount approval – if you plan to borrow money, the amount you want will depend largely on the . And if the equity is deemed insufficient for the amount you are requesting, your application will likely be rejected.

    Home equity loans are best for large-scale projects, basically work that you expect will be costly. This includes a major home repair, remodel, or renovation, as well as a home addition.

    Remember, personal loans are ideal for minor home construction projects that only need a small budget. On the other hand, home equity loans are best for large-scale projects that need a lot of funding.

    How Does a Home Equity Loan Work for Home Improvements?

    If you believe that a home equity loan is the most suitable for your planned upgrade, home addition, or renovation, you might wonder if it is all worth it. After all, you’re going to deal with monthly payments, interest rates, and the possibility of foreclosure. Think of it as another mortgage, but for upgrades you do to your home.

    Let’s admit it – not all homeowners are good at handling money, especially when they come across large amounts. This is why for some, home equity loans are risky. Since they immediately get large amounts, they may end up using a portion of it for other things, only to realize that the money left is no longer enough to fund the remaining work.

    There are also times when homeowners overestimate their loan – they end up borrowing more than what they need. So, if they still have $1000 available after the work is completed, they can’t return it to the lender and they still have to pay interest for it.

    To avoid this, there is another option that homeowners can avail of. The HELOC, or home equity line of credit, is basically the same as the home equity loan but instead of immediately getting all the money you borrowed, you have the option to get it only as you need it. Instead of getting all $7000 in one go, you can withdraw different amounts on different dates.

    Not only that, the line of credit also allows you to return the money you were unable to use. If you only used half of the funding you received, you can return the other half and you will only be charged interest for the money you used up.

    Home equity loans and HELOC are not concerned with how you are going to use the money for home improvement; their concern is your ability to pay them back. It’s up to you how you will use it to make upgrades to your home.

    Home Improvement Loans with No Equity

    You might think that all hope is lost and there’s no chance for you to make upgrades to your home anytime soon if you have no equity for your home.

    But if you were paying close attention, you’d realize by now that there’s a way for you to get a loan despite this situation. And this is through a personal loan, often referred to as the home improvement loan.

    Personal loans will not depend on the value of your home, making it perfect for homeowners who have no equity or have insufficient equity to qualify for a home equity loan. This is what many homeowners who want to be on the safe side go for.

    Another option for those with no equity is the Title I Government Loan, also referred to as the Title I Property Improvement Loan. It works similarly to a personal loan, but the amount you can borrow is significantly less. This is another option for those with no equity but are not confident with being approved for a personal loan.

    Title I Government Loans

    If your dilemma about securing a home improvement loan is that you have no equity and your credit score is less than stellar, this section is for you.

    You may not be familiar with it but the Title I Government Loan offered by the Federal Housing Authority, or FHA, solves that problem for you.

    This unsecured loan aims to help homeowners make their homes much more comfortable for them to live in. And no, you can’t use this loan to build a swimming pool or have a rose garden in your backyard – they won’t approve it.

    This type of loan will cover a repair, renovation, or a small upgrade to your home. You can also use this loan to buy much-needed appliances for your home. As long as your project or planned purchase makes your home habitable, you may be granted this loan.

    Contrary to popular belief, it is not the government, particularly the Department of Housing and Urban Development, better known as the HUD, you will borrow money from. Rather, the government acts as a guarantor to lenders that they will still get a certain amount even if the borrower has defaulted.

    What you need to know about this loan is that:

    • Loan terms are longer – unlike personal loans, you can pay a Title I loan back in up to 20 years
    • Amount you can borrow is limited – it will depend on the type of home you have, but it is generally lower than those of personal loans. This is usually at $25,000 max. If you need a larger funding, 203k loans might fit the bill
    • APR is lower – because it is geared towards homeowners with modest incomes, interest rates are much friendlier
    • There is a fixed charge of $1 for every $100 of the loaned amount – this $1 is the mortgage insurance premium added into your interest rate.
    • No minimum income or credit score – anyone who does not qualify for the other home improvement loans can apply for it

    Of course, not everyone will be allowed to apply for this loan. Those who qualify:

    • Should have a maximum of 45% debt-to-income ratio
    • Either have a home lease that is long-term or own the house they want to improve
    • Should have the house built or have lived in it for a minimum of 90 days

    While it sounds tempting to just go for this loan even if you know you qualify for a home improvement loan or even a home equity loan, your application will likely be rejected. They will only grant this loan to those with limited means to get their homes fixed.

    Alternatives to Consider

    Financing your home improvement project is not limited to those options we already mentioned. You can also use the following:

    • Credit Unions – they are much more lenient in terms of credit scores of potential borrowers, and they have an average APR of 18% maximum
    • Credit Card – you can use it to pay for your expenses, especially if the work is small or medium-scale only. Check with your credit card issuer if you qualify for installment schemes with no interest
    • Energy Efficient Mortgage – just like the Title I loan, this is also backed by the government. They will guarantee payment to lenders for loans aimed to make home upgrades, specifically related to energy efficiency
    • Cash-out Refinancing – if you have an existing mortgage, you can request to increase the amount and use the extra money you got for your home improvement project. Of course, you’ll have to deal with new terms and possibly a new interest rate
    • Eldercare Locator – catering to seniors and is organized by the U.S. Administration on Aging
    • Specially Adapted Housing Grant or Special Housing Adaptation Grant – only offered to disabled veterans
    • Single Family Housing Direct Home Loans – under the U.S. Department of Agriculture, or USDA, and is limited to rural homes

    Refinancing Your Home for Home Improvement

    If the idea of getting a new loan for your home repairs or upgrade on top of your existing loan or mortgage sends shivers down your spine, why not consider refinancing?

    Like we mentioned, this involves your existing loan being increased, with the difference between your old loan and the new one used as funding for your home’s renovation, remodel, or repair.

    Doing this is ideal, especially if you have plans to move out and sell your house in the future. Home improvements can cause a great increase in the market value of your home, and this may be more than enough to pay off your entire loan.

    Although this sounds like a good option, you also need to be aware of its drawbacks. First of all, this can result in higher interest rates and higher monthly payments for you. And because your loan is extended, you’ll have to pay for it longer.

    Again, this method is ideal for homeowners who aim to make improvements to sell their home in the future. This is not ideal for homeowners who just want to renovate by borrowing money through this method.

    How to Get Home Improvement Loans

    piggy bank

    Before embarking on the remodel or home upgrade of your dreams, you need to clarify money matters first. How to pay for home renovations, how much to allot for it, which project to prioritize and fund first… the list goes on.

    If you plan to use a loan as the primary source of your funding, it is all the more reason for you to be careful and not dive in headfirst without any sort of plan. If not, you’re looking at a higher possibility of foreclosure and debt.

    Getting home improvement loans is not as easy as it seems, and we’re not only taking about being approved for it.

    You don’t want to get a small amount, only to find out that it’s not enough to complete your kitchen remodel or home repair. You don’t also want to get more than what you need, because you can’t return the excess amount and you still have to pay interest for it.

    You need to understand the entire process of getting a home improvement loan of your choice, and we’ll walk you through it:

    1. Identify what kind of project you plan to undertake – this will help you gauge if you can already forego loans and just work with your savings. Being specific about the home improvement project you want to undertake will also help lenders gauge how much you need to borrow, which is helpful if you don’t have a clue.

    Lenders will ask what the purpose of your loan application is and the more specific your answer is, such as for a bathroom remodel or a home addition, the more likely they will grant your loan.

    1. Get an estimate – if you are no stranger to home improvement projects, you may be able to make an educated guess of how much it can cost you. But if not, it is best to get a professional contractor to do it for you. And when you do, make sure to get quotes from different, . It doesn’t matter if you’re getting , or you need a , getting competing quotes is always the way to go.

    Professional estimates will also help you lessen the loan amount you should apply for, as it can help you identify if there are some aspects to the work that you can pay for in cash instead.

    1. Determine your credit score and/or home equity – it is important for you to gauge if you have a suitable credit score, home equity, or both, before you apply for any loan. This allows you to gauge the odds of getting your loan approved or rejected. After all, this is the primary basis of lenders.

    It doesn’t matter if you apply for a loan in Florida, Massachusetts, or Minnesota – lenders will primarily rely on one of these two, or both, depending on the loan you are applying for.

    You also need to keep in mind that you need to have not just a good credit score but also a good credit history, debt-to-income-ratio, and loan-to-value ratio. Banks, credit unions, and other lenders need to be assured that you can pay them back before the grant you a loan.

    1. Choose the term of the loan that works best for you – lenders will give you different payment terms for loans, but you can also check the available terms they have online, as these are pretty standard. You can use the loan calculator to know how much you can expect to pay every month, depending on the loan and the terms you want.
    1. Have yourself prequalified to know the possible interest rate for you – making soft inquiries to possible lenders is normal. This allows you to compare their interest rates, helping you decide whom to borrow from. Don’t take long with deciding though, as the rates given to you will change after some time.

    Also, make sure to let them know that you are just making soft inquiries and not hard inquiries. Too many hard inquiries can affect your credit score in the end, especially if you do it for a prolonged period.

    1. File your application – it has been suggested that the best time to apply for a loan is way before you plan to start your home improvement project, with a month’s allowance being ideal. This gives you ample time to process your application, and you can easily make adjustments in case of unforeseen delays.

    Keep these things in mind and securing that loan is almost a guarantee.

    How to Qualify for a Home Improvement Loan

    One mistake that many homeowners make is having a mindset that they can just get the loan they want with hardly any effort. After all, lenders will earn a lot from them, so they believe these lenders will just give out loans to anyone. Imagine their shock when their application gets rejected.

    You can’t just walk into a bank or approach a credit union and say, “hey. I need this amount because I want to do a bathroom remodel. On second thought, how about adding some more to it because a kitchen remodel also sounds mighty tempting?” and expect to get the amount you want immediately. It doesn’t work that way.

    Qualifying for a loan means you need to meet the minimum requirements set by the various lenders, normally in terms of the following:

    • Credit score – minimum score depends on the lender. Some will accept lower scores than usual, while others are strict and have higher required scores
    • Credit history – lenders need proof that you were able to settle your debts and make regular payments to your mortgage
    • Debt-to-income ratio – this ratio is the result of dividing your monthly income by the total of your required monthly debt payments or obligations. Ideally, this ratio must be 41 at most; your monthly income should be enough for you not just to make monthly payments but also cover your everyday needs and expenses
    • Loan-to-value ratio (for home equity loans) – simply divide the amount you want to borrow by your home’s current value to get this ratio. A high ratio normally lessens the chance of a homeowner to get the loan amount they want.

    Of course, you still need to provide documentary requirements your chosen lender to increase your chance of getting a loan, and these will depend on the lender of your choice. Also, lenders will look at the amount you are requesting for your loan. If the amount is high and you can’t prove to them that you can pay it back every month, it will lessen the chance of approval.

    Remember, everyone who wants to avail of home improvement loans must meet the requirements set by lenders before they get their much-needed funding.

    Minimum Credit Score for Home Improvement Loan

    Whether you plan to get a personal loan for home improvement, or looking at a home equity loan, your credit score will matter. You should meet the lowest credit score required by any lender before they possibly grant your loan.

    Some lenders are generous with the FICO credit score they require – they will accept even a score of 580 or ‘fair’. On average, you have to get a score of 620 before they will consider your application. Getting a 680 credit score and up, or a ‘good’ to ‘excellent’ rating, is what you should aim for.

    Which Lender Should You Go With?

    No two lenders are alike. This is why you need to take time to check and compare the offers of various lenders. They may be choosy when it comes to selecting whom to lend money to, but homeowners don’t realize that they also have the power to be choosy when it comes to picking the lender of their choice.

    When it comes to selecting a lender, it all boils down to these four factors:

    • Amount of the loan – banks, such as the Bank of America and Chase bank, as well as other lenders, have different minimum and maximum amounts they can loan to homeowners. Choose one that has terms that fit your budget.
    • Customer service and satisfaction – we all want to go for lenders who will go the extra mile to cater the needs of their borrowers, not just aim to make a quick sale and harass them come payment time.
    • Minimum requirements – what Wells Fargo requires will differ from what Capital One will ask of borrowers. It’s good practice to check your prospective lenders’ requirements and gauge whether you qualify or not before filing your application, as some will require payment of application fees.
    • APR offered – even if they publish their APR, lenders will still have the final say on what rate they will give you. To avoid being blindsided by this rate, get yourself prequalified first for each lender you are considering, and check which one has the lowest rate.

    Due diligence is important before signing on the dotted line for your home improvement loan. Take note of these factors, as well as the terms that come with the loans, before finalizing everything.

    How to Finance a Remodel Without Equity

    You might think loans are the only way for you to get funding to remodel your home. Aside from the different types of loans we already mentioned, you can also make use of the following to finance it:

    • Your savings – a rule of thumb is to avoid getting loans and just work with whatever money you have. However, this does not really apply to everyone. Remodeling a home can get pricey and not everyone will have enough money for it; it will take time before you can save enough money for a remodel. But if you can use cash to finance even just a part of it, do so to lessen the interest you will pay back.
    • Contractor loan – some contractors, especially the established ones, will not only work on your home, they can also aid you in terms of financing. Their requirements may not be as stringent as that of most lenders, but you have to contend with higher interest rates.
    • One-time close construction loan – some lenders, such as those in Texas and Michigan, will also offer this type of loan to homeowners. When applying for your mortgage, particularly if you are buying an existing home, you can also apply for funding of its remodel at the same time.
    • Credit card – those with a rebate or cashback feature can benefit you. And if the stores you plan to get materials from have installment options, especially those that offer zero-interest, you may want to think of getting it. Make sure to pay in full every month to avoid the high interest they are known for.
    • Unsecured consumer loan – various institutions can lend you money without any collateral, as long as the amount doesn’t exceed $10,000. They will just consider your credit score, but the downside of this is its high interest rate. Tax deductions and getting a contractor for it is out of the question.

    It’s up to you which of the options we mentioned throughout this article seems much more convenient for you. Whatever option you choose to fund your home remodel, always make sure of the fine print and payment terms that come with it.

    Are Home Improvement Loans Tax Deductible?

    Would you believe that there are tax benefits you can get from home improvement loans, aside from getting the needed money to fund the work? But before you go rushing out the door to apply for a loan, there’s a catch you need to know – not all home improvement loans will qualify for it.

    In general, these will qualify for tax deductions:

    • Capital Investments – if work being done on your home is for home improvement, you can get tax deductions for it. Home improvements should aim to increase the home’s value, increase its life and usability, or repurpose it.

    Most homeowners get confused as to what falls under this category. Bathroom remodels, home additions, kitchen remodels, replacement of a roof or windows, basically anything that involves additions and replacements would qualify.

    Do note that this tax deduction is only for the loan’s interest, and only if a HELOC is used to fund the home improvements. And again, the total of the loan and your mortgage must not be more than $750,000.

    • Buying a home and getting a home improvement loan at the same time – there will be a mortgage interest deduction that you can get tax benefits from.
    • Doing repairs on your home – if you are just doing spot repairs, patching up holes and cracks, or changing a room’ paint color, it won’t qualify for tax deductions. That is, unless you sell off your home. In this case, they can be considered as tax basis.

    If you spent a lot on home improvement, your tax basis also increases, resulting in less profit for you when your house gets sold. To balance it out, you have the perk of paying less tax.

    You may also be allowed to get your tax deducted if the repair needed in your home is related to a home improvement work being done at the same time. This means if your electrician discovered a wiring issue while doing a kitchen remodel, you may get a tax deduction for the repair.

    • Home Office – if you plan to make a home addition to have your home office, or want to improve your existing one, you may be qualified for a tax deduction of all your expenses for it. You need to prove that you will use that office for business purposes only and regularly.
    • Rentals – if the home you are upgrading is something you rent out, the cost of improvements done to it can also be considered as either tax deductible or qualify for depreciation.
    • Health or medically-related home improvements – if mobility is a priority and you need a wheelchair ramp built, or you need to get an air filtration system installed for health reasons, you can make such improvements and get tax deductions for it. Just make sure you can prove that it’s what the doctor ordered.
    • – it’s all about going green lately and the IRS is in support of that. In fact, they give incentives in the form of tax deductions or tax credits to homeowners who make improvements to their homes that are related to energy-efficiency, such as adding solar panels.

    Now that you have a better idea of how you can borrow money to fund your home improvement project, the idea of getting a loan doesn’t sound so bad after all, doesn’t it?

    Just make sure to ask around to get the best deal, read their terms and conditions, and pay on time. You won’t have any problems with it, really.

    Even better, you can save time if you let us help you out! Just make sure to fill out the form above and we may be able to help you finance your home improvement project for up to $3000. No need to go and meet with different lenders – you can just do it online with us.

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