1: Are there any banks that are better to deal with when getting a home equity loan for a remodeling project?
2: What percentage of your customers finance their project with a loan versus cash?
We offer 100% financing up to 21 months 0% interest to our customers directly through our website. We have found that when we wanted to offer financing through the banks they wanted a hefty fee for the financing. Wells Fargo wanted a fee from the client and also wanted to charge the client the full amount and pay us $400 less than our invoice, no matter the cost. So a $2800 patio cover would cost us $400 to get the job through their financing and then the customer would be paying a percentage of interest, based on their credit, on a loan that is more than we were paid.
Great question, David.
One option is a 203(k) loan. The loan is generally approved up to $35,000 (in our experience). The loan is processed through a bank, and the loan is specifically for home remodeling projects. The loan (like most loans) requires a little effort (regarding paperwork) like obtaining 3 estimates from contractors, but it is a good loan that would cover a few, small home remodeling projects or one, large home remodeling project.