Being able to turn a bare-bones property into a dream home is an opportunity that many homeowners dream of. However, the complexity of these projects can affect the total amount of funding necessary to complete them.
Luckily, home improvement loans can provide you with the financing you need to conduct repairs and install additions to your property. Since they don’t typically receive as much publicity as a traditional mortgage loan or home equity line of credit, home improvement loans are shrouded in a cloud of mystery.
This article will clear up the confusion as you discover a few common myths about home improvement loans and their lending requirements.
Myth 1: You Need Perfect Credit To Qualify
Many homeowners believe they’ll need superior credit to qualify for a home improvement loan, as is the case with other lines of credit. However, that couldn’t be further from the truth!
Having a credit score in the 800s is fantastic, but it isn’t necessary unless you are applying for a new construction loan. Many individuals have secured home improvement loans with scores in the mid-600s and higher 500s with little resistance.
Myth 2: Loans Only Cover Essential Repairs
Home improvement loans are able to cover the cost of roof installations, HVAC unit replacements, foundation repairs, and other essential elements to maintain a home’s livability.
However, these types of credit can cover more than the core aspects of a residence by funding projects that would increase property value, such as cosmetic updates and full kitchen renovations.
Myth 3: Loans Only Cover Detached Properties
At first glance, condominiums and townhouses don’t appear to be eligible locations for home improvement loans. However, many applicants don’t realize that these properties can receive renovation financing that will enable owners can make the space their own.
While there are myths about home improvement loans, these types of credit are perfect methods to finance property repairs, upgrades, and enhancements. If you’re looking for a personal loan for home improvement, feel free to contact us at Superior Financial Services.
Our advisors have 25 years of experience in the industry and can get you started with an application today.