Home Improvement Financing
Written by Lee Wyatt (last updated January 26, 2022)
Quite often the single most difficult part of any home improvement project is obtaining the funding and financing necessary to complete the project. Before going out and beginning any new home improvement project (whether it is repainting a wall, putting in a home playground, remodeling your kitchen or adding a new room) you are going to need to know where you stand financially. That is what this little list is for, to help you find out where you stand financially, as well as helping you to know what your options are for being able to fund your home improvement project.
- Budget. The very first thing that you are going to need to do is figure out a budget. It would probably be helpful to draw up three budgets. The first budget is going to need to cover your personal finances. Unless you know how much money you currently have, there is no way that you are going to have the slightest idea of what you are working with. Your second budget is going to cover the project itself. When drawing up this second budget, I would suggest that you begin by creating the dream project, meaning that you should go with everything that you want for your project. The third, and final, should be along the lines of a hybrid between your two previous budgets in order to give you a more accurate idea of what you are going to need for the project's funding.
- Grants. One of the options available to you is the use of grants. Believe it or not, but the federal government does actually provide grants (free funds that don't need to be paid back) for improving your home. There are some limitations for these types of financing, but you would be surprised on how easy it is to be approved for these. For more information on the home improvement grants that are available, take a look at our article on getting a home improvement grant, or by looking at the U.S. Department of Housing and Urban Development (HUD) website about the topic located at http://www.hud.gov/improvements/.
- Loans. One of the more traditional ways to get financing for home improvements is to get a loan. Each and every financial institution has their own lending policies, but there are some general similarities between all of them. This is one of the situations where the budget's that you wrote up earlier is going to come in handy. For more information on how to get a home loan, take a look at our article on how to get a home loan.
- Savings. Probably the single best method for doing any type of home improvement project would be to use your savings. It might take you a whole lot longer to get everything done that you wish, but at the same time, you are not going to end up in hock to your eyeballs.
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