Loans For Home Improvement: Finding The Money

There is nothing quite so satisfying as taking on a major home improvement job. Whether it's re-doing the kitchen, remodeling the bathroom, or adding a new wing onto your house, it gives you a sense of control and mastery over your domain. Not to mention, it can make a positive difference in the resale value of your home. Of course, if you want to take on a job of that magnitude, you'll need to find a good contractor who can work with you on the design process and the actual building. This will cost money, and it could be quite a bit more than you have lying around. But loans exist for people in your situation. Here's how to find and use them.

Getting a loan for home improvement is a little different than getting a loan to, say, buy a car. Because you obviously have a house and some form of income to help you pay the mortgage, it's often quite a bit easier to find companies willing to part with their money. You may also be able to get better terms than you would in other situations. The first thing you should do is go straight to the lending company that holds the mortgage on your house. They will likely be more willing than anyone to give you some money for this new loan, especially if you've been strict and precise about turning in your monthly mortgage payment.

If you are having trouble finding a place that will loan you money for home improvement, check with the government. The HUD department offers grants and loans to certain individuals and families who want to make improvements to their houses. It never hurts to apply, so make sure you send your application in. The terms on a loan will be very favorable. If you choose to go through a government-backed loan, you will likely not be able to have that loan discharged in any future bankruptcies. Make sure you can pay the loan back before you decide to take it.

Of course, if none of these options work for you, then you'll be left with a couple of other options. Option one is to simply wait it out. Save up the money slowly and pay for the home improvement job when you have enough. Option two is to find ways to make the job cheaper. This does not mean shopping for a bargain basement contractor. There are certain places you don't want to skimp, and this is one of them. That doesn't mean you need the most expensive company on the block, but you don't want the cheapest, either. But perhaps your plans were too ambitious. Maybe a change here or there could bring the cost down considerably. Everybody wants what they want, but sometimes you have to accept that it's this or nothing. Make some sacrifices, and you could still have something that will change your home for the better.