Refinance Lane - The Trusted Source for Home Mortgage Loans Free Mortgage Quote
Refinance Home Equity Debt Consolidation New Purchase Home Improvement
Need a Home Improvement Loan?
Get free no-obligation refinance mortgage quotes in minutes.
Get matched with up to 4 Lenders!
Get your quote:
Refinance Mortgage Loan
Refinance Quote
Home Equity Quote
Debt Consolidation
New Purchase
Home Improvement
Newsletter Signup

Home Improvement Loan

A home improvement loan will often take the form of an equity loan, typically for a fixed amount rather than a line of credit. If you have equity in your home, many financial institutions will be eager to make this type of loan to you at a reasonable rate of interest, since the home improvements that will be made with the proceeds will increase the value of the collateral property.

There are also FHA programs available to help. Section 203(k) is a type of insurance provided by the FHA that allows a homebuyer to finance the purchase of a house, as well as rehabilitation and improvement costs, in a single mortgage loan, a tool that is especially useful for the handyman who wants to purchase and repair a “fixer-upper” to save money. Straight-out home improvement loans on existing property can also be insured by the FHA through Title I property improvement loan insurance. This type of FHA insurance protects lenders against defaulted home improvement loans—a tool that makes lenders more willing to make these types of loans. The maximum amount for a Title I loan is $25,000 for a single family home.

When arranging for home improvements, it’s best to try to arrange the loan through a trusted financial professional, rather than directly through a contractor. When you think about it, this makes sense. Does your banker offer to come over to your house with a tool belt and repair your siding? Not likely. A contractor that offers to do your banking for you may be up to no good.

A common scam works like this: a contractor knocks on your door, offering to do some needed repairs, and informs you that you do not have to put any money out up front, instead, he will arrange for financing with some bankers with whom he happens to do business. Later, after work has already started, he will bring papers by for you to sign, which you later discover charges an unreasonably high rate of interest, places a lien on your home, and carries strict default terms. When you can’t pay, or if you’re late, they default, and you lose your home.

Using the equity in your home to get an improvement loan can be a valuable tool, but proceed with caution, and procure the loan only through a reputable, trustworthy banker, never directly through the contractor.

The latest news and expert advise on how to best find and secure your mortgage. Sign up for our Mortgage Newsletter Now!

Locate Mortgage Lenders Near You:

Alaska | Alabama | Arizona | Arkansas | California | Colorado | Connecticut | Delaware | Washington DC | Florida | Georgia | Hawaii | Idaho | Illinois | Indiana | Iowa | Kansas | Kentucky | Louisiana | Maine | Maryland | Massachusetts | Michigan | Minnesota | Mississippi | Missouri | Montana | Nebraska | Nevada | New Hampshire | New Jersey | New Mexico | New York | North Carolina | North Dakota | Ohio | Oklahoma | Oregon | Pennsylvania | Rhode Island | South Carolina | South Dakota | Tennessee | Texas | Utah | Vermont | Virginia | Washington | West Virginia | Wisconsin | Wyoming

Select a loan type:

Debt consolidation | Second mortgage | Home equity | Home improvement | First mortgage | Refinance | Purchase | Cash-out | Jumbo mortgage | FHA streamline | VA-streamline | No equity loan | 125 percent second mortgage | 100 percent second mortgage | 80 percent second mortgage | Fixed rate mortgage | Adjustable rate mortgage

Select a lender:

Chase Manhattan Mortgage | Countrywide Home Loan | GMAC Mortgage | Ameriquest Mortgage | Washington Mutual | CitiMortgage | Ditech

New Purchase | Home Improvement | Refinance Quote | Affiliate Program | Chicago Homes | Mortgage Lead Program
Copyright 2005 Refinance Lane. All rights reserved. Terms of Use | Site Map
We collect personal information on this site, please read our Privacy Policy.