Posted on May 9, 2011 by MyProjectLoan.com |
There are many words that describe the act of fixing up your home and the loans that go with them. Renovation loans, remodel Loans, home improvement loans and so on. These can encompass many different sub categories as well such as kitchen remodel loans, bathroom remodel loans, walk in tub loans, basement finishing loans, waterproofing loans, roofing loans, window loans, siding loans, decking loans, landscaping loans, pool loans, spa loans, and many more.
The important thing to know about these types of loans no matter what the specific name is that they usually fall into two major types of home improvement loan categories.
Secured loans mean that the loan is secured by some sort of collateral whether that is the home itself or the product being financed. Secured loans typically have a longer payback term such as 10 years, 15 years and more. Equity is usually the deciding factor in whether or not you have the option to consider a secured loan for your home improvement project.
Unsecured loans are generally underwritten by analyzing the credit, income and debt ratio of the person borrowing the money and there is no collateral involved in this process. Credit requirements are usually more strict since no collateral is involved and in the case of borrower default there is nothing for the lender to take back. In addition it is more common to see shorter term loans for unsecured home improvement loans.
If you are looking to finance any type of home improvement project you can consider both types of loans to depending on your situation.
Happy home improvements!
Tags: bad credit loans, home improvement loans, remodel loans, renovation loans, secured loans, unsecured loans
Posted on April 5, 2011 by MyProjectLoan.com |
We have been providing home improvement financing services for over 15 years and our staff has over 60 years experience in the banking business. During this time we have served over 2,000 independent home improvement contractors and home improvement dealers with their financing needs for their customers.
Many contractor financing programs have come and gone such as Key Bank, Amerifirst, and First Mutual, and some of the remaining big players such as GE Money have cut back sharply on their loan volume and have tightened up their underwriting guidelines. Throughout all of these changes we made the commitment from the beginning to make sure that the programs that we make available to our dealer network are the best in the business.
Our commitment to offer the best secured and unsecured home improvement loan programs that have competitive rates and terms so that home improvement dealers are able to offer the very best programs to their clients. I have heard various figures from research studies about how much more home improvements a dealer can sell when financing is offered in conjunction with the sale. These figures range from 20-50% or more depending on the size of the project and the type of home improvement being done.
I think that it is hard to put an exact figure on this increase in business but I can tell you without fail that sales will increase if you have financing available to your clients. You may also see that you gain a competitive advantage over your local competition by offering financing for home improvements. All things being equal you will sell more product and secure more clients with home improvement financing for dealers.
Happy Remodeling!
Tags: home improvement contractors, home improvement dealers, home improvement financing, home improvement loans
Posted on April 3, 2011 by MyProjectLoan.com |
Our customers and dealers often ask if we provide bad credit home improvement loans. The short answer is, “Yes, we do.”
Credit scoring models and data that carries weight on scores has changed a lot in recent years. What used to be beneficial to your credit often will have little or no effect on scores such as a co-signer on a credit card that has outstanding credit. This used to be a loop hole in the scoring model that has since been closed by the 3 major repositories. Medical collections are often looked at as having no effect on credit to some lenders.
Credit inquiries can be confusing to some consumers as there is a lot of people that think each one counts against your scores and this is not always the case. The bureaus let you have some leeway when you are shopping for a car , mortgage or home improvement loans. Multiple hits within a few weeks from the same category doesn’t count against you nearly as much as you think and sometimes not at all.
So yes, we finance a lot of home improvement loans for people with bad credit. It takes a trained eye and a skilled credit analyst to read between the lines and find creative ways to get the bad credit home improvement loans approved. We have seen loans with scores below 500 get approved and home improvement loans with foreclosures, previous bankruptcy, collections and liens get approved as well.
I would advise anyone that thinks that they have good, bad or questionable credit talk to a representative to see how your situation might allow us to get your loan approved and your new home improvement project or remodeling job started.
Happy Home improvements!
Tags: bad credit loans, home improvement financing, home improvement loans
Posted on March 30, 2011 by MyProjectLoan.com |
I have been in the home improvement loan business for nearly 20 years. I have seen some tough times in the credit markets including the 1998 flight to quality and the big bank and mortgage implosions of 2007 -2008.
Many direct to consumer and dealer contractor home improvement loan programs that many in the trade were familiar with either change drastically or evaporated. Some of these companies that were big players in the home improvement loan space included Key Bank, Amerifirst Financial, and First mutual.
The credit markets have been good, bad and ugly during these times but the demand for home improvement loans has never waned. When home values fall, a lot of people are more likely to be locked into their homes because of the inability to sell or the uncertainty of the job market has made them want to hunker down.
With this mentality we have seen the consumer trend of improving the home you have instead of buying a new one. These major improvements include major kitchen and bathroom renovations, swimming pools, spas, sunrooms, energy efficient windows, siding and solar improvements. You may be in your home for a long time so you may as well enjoy it!
Happy home improvements!
Tags: home improvement financing, home improvement loans
Posted on March 17, 2011 by MyProjectLoan.com |
We recommend many varieties of home improvement loans including real estate, secured and unsecured loans and even military loans to finance your dream project. One question that is often asked is, “Can I or should I prepay my loan off?” Most home improvement loans these days have no prepayment penalty so you do not have to worry about paying a fee or penalty to pay the loan off early.
In the case of an unsecured loan I often recommend that you prepay the home improvement loan note off as fast as possible without burdening your finances. Unsecured home improvement loans have terms that range from 3-15 years or more and every year that you carry that note you are paying interest. If you were to prepay the note you are actually going to pay much less interest over time.
In the case of secured loans, these have the potential to give you a tax break by writing off the interest paid over the life of the loan. You should consult with a licensed CPA to determine if your loan would fall into this category. If in fact you have a tax break with this type of loan your CPA will advise you if it makes sense to prepay or just pay the minimum payment and carry the loan for the full term.
All things considered you may want to prepay your loan balance down if your finances can afford this or maybe just pay the minimum if you fall into a category where it makes sense.
Good luck with your home improvement project!
Tags: home improvement financing, home improvement loans, loan payments, loan penalty, loan prepayment
Posted on March 10, 2011 by MyProjectLoan.com |
Pre-qualification for a swimming pool loan is a topic we are asked to address a lot and I will try to give both sides of the coin when I answer this. In the real estate world most realtors want you to have a pre-qualification letter in hand showing how much home you can afford. This is not necessarily the case when it comes to shopping for a home improvement loan.
Depending on the type, size and scope of your home improvement project you may want to consider how much you “think” you want to spend. To have a general idea of what you think your budget should cost will help the window, siding, kitchen, bath or roofing contractor know where to start the process of working up a bid. Home improvement loans come in all shapes and sizes just like the projects you want to build.
When To Get Pre-Qualified For A Home Improvement Loan
After you have a general idea about what you are looking for and an approximate budget (including down payment amount), now you should reach out to a reputable home improvement financing company. They will be able to steer you in the right direction and help you fine tune your budget and get you pre-qualified for that amount.
When you have a pre-qualification in hand is when it is time to start talking to home improvement dealers and builders. You want to interview the contractors and do your due diligence on their services. Compare the bids as well as the service and warranty that is offered. When you have finally made your decision it is go time. Sign the contract and with unsecured financing that is pre approved in place all you have to do is wait for your project to be completed and start years of enjoyment in your newly remodeled home that was financed fast and easy with unsecured home improvement financing.
Tags: home improvement financing, home improvement loans, prequalified financing, prequalified loans
Posted on March 3, 2011 by MyProjectLoan.com |
Many people don’t know where to start when it comes to searching for the best home improvement loans. People often think that a home equity loan or a second mortgage is where to start but often times that is not the best option. Second mortgages are very difficult to find these days and often require you to refinance your 1st mortgage so that the second lien lender has both loans. This is in addition to the 4-6 weeks it takes to close and fund your loans and we haven’t even touched on the potential closing cost that are involved.
What then is the solution you ask? We think that the very best option for a swimming pool loan or home improvement loans would be an unsecured home improvement loan.
What does unsecured really mean? It means that the lender has no lien or security interest in your home or property, or in this case your new bathroom, roof, sunroom or other project. Would they even really be able to come and repossess a roof or bathroom that was already installed anyway? Unsecured home improvement loans often have zero or very little closing costs, competitive rates, and no prepayment penalty. Terms usually range for 3-15 years for and the start to finish process can be done in as little as 3-7 days.
All things considered, we think that unsecured home improvement loans are the most cost effective and simple way to finance your dream home improvement or swimming pool project.
Tags: home improvement financing, home improvement loans, unsecured financing, unsecured loans
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