Are they a special class of loans? Are there multiple types? How do we know if it’s a good option? Should we start with our bank, or are there preferred special lenders?
This is our first time considering taking out a loan for renovations so advice is welcome!
Thanks,
Debbie
A home improvement loan is any loan used to improve the value of your home. Typically lenders lend this money against the current equity in your home, or against the proposed equity after the improvements. But there are lots of different versions of home improvement loans.
Hi Debbie, there are different types of loans, some of which are secured loans (secured using your home for example) and there are unsecured loans (using your personal or joint credit history ect). You can look into what loans your bank might offer, as well as other banks. Also, depending on the contractor that you use, they might be able to help you gain access to, or inform you about, other lenders that work together in some way with contractors. Also, some lenders will qualify you differently depending on your credit score, and they may offer different interest rates and pay-off options. Best of luck!
