Fathom Realty
Expanding your home to add value and square footage can be costly, so it’s important to know how to finance a home addition. Just like with buying a home, there are many loan options available to homeowners to fund their projects.
Here is a quick guide to the most common options for financing an addition to your home:
A home equity line of credit allows you to utilize the equity you’ve already built in your home. Equity is equal to the value of your home minus the amount you still owe on your mortgage.
A home equity line of credit typically has a draw period in which you can tap into funds while only paying interest payments. After the draw period ends, you enter a repayment period and start paying back the principal amount.
Title I loans offered by the Department of Housing and Urban Development are available to help fund renovation projects. Requirements for qualifying vary from one state to another, but are meant to fund improvements to basic utility and livability of your home.
Therefore, if your remodeling project is purely aesthetic, you may want to consider a different type of financing.
A personal loan isn’t tied to the value of your home, but dependent on your individual financial situation. Credit history and debt to income ratio are the main factors lenders will consider when approving you for a personal loan.
This type of home improvement loan offers flexibility for those who don’t want to use their house as collateral. They can also be a good option for homeowners who haven’t had time to build equity in their property yet.
These are only a few options for financing your home remodeling project. Some other possibilities include home equity loans, cash out refinance programs and low-interest rate credit cards for smaller projects. As long as you compare your options carefully, you’ll find the best way to fund your remodeling goals.
With over 10 years experience serving the Dallas and metro area, I am dedicated to providing my clients with outstanding customer service and to earning the referral business of my clients. I focus on family values and customer service. I have made a lot of friends in this business. Constant communication is a big part of my success. Proven professional who brings knowledge, skill and care to every transaction. I would love to be your realtor and if you know of anyone who is thinking about buying or selling a home or would just like additional information about property values in my area then call, text or email me today. If you or someone you know are a veteran, firefighter, policeman, teacher, doctor, nurse contact me about special incentives. If you or someone you know has a blemish on your credit report and is not in active bankruptcy contact me about a new company that can help you get into a home. If you need a reputable credit repair company that will give you help to get back on the right track then I have a great company. If you want to purchase a home but still don't have enough saved there are still available funds to help you with that. Are you or someone you know relocating to the Dallas area? I have helped families relocate here. I understand your family's needs. Certifications: New Home Construction, Senior Designation, American Warrior, First Time Home Buyer, EPRO,Relocation
