A home renovation contractor that offers financing would be a fantastic find. You are on a mission to complete the perfect project. But there’s some funding you need to get the job done right. Whether your home is a little outdated, less-than-functional, or needs a major overhaul, finding home renovation financing is the first step toward fixing those problems. How can you find the right choice for you?
A home renovation contractor who partners with HFS Financial to provide contractor financing is a bonus, in which case your loan problems are automatically solved. Hooray! But if not, don’t feel like you are out of luck. You can apply for financing through HFS Financial on your own.
A Home Renovation Contractor That Offers Financing is a Great Option
A contractor who offers financing can come in different forms. They may offer internal financing through their own company — letting you pay back your loan over a period of time with certain rates and terms. They may direct you to your local bank or credit union. Or they may be one of the companies who offer financing through HFS Financial, giving you the best choice of a loan that doesn’t tie up your home or make you refinance and start over on paying your mortgage. So, which one is right for you?
Home Refinancing Options
There are a few different home refinancing options. Although they have slight differences, one common drawback to all of them is that you’ll be putting your house on the line. If you fail to make the payments, your home may face foreclosure. Another commonality to these options is that you will need to schedule an appraisal of your house. There’s no doubt these processes are lengthy and complicated.
Home Equity Loan for Home Renovation Financing
The downside to a home equity loan is that you’ll need to have at least 15-20% equity in your home. Additionally, you could end up upside down on your mortgage if the value of your home drops.
Home Equity Line of Credit (HELOC)
Instead of getting a lump sum of money upfront, you’ll pull from a line of credit as needed. The negative side of a HELOC is that the interest rates are variable. In other words, your interest rate will rise when the federal reserve interest rate rises.
Cash-Out Refinancing for Home Renovation
This kind of refinancing involves re-doing your mortgage to include extra money for the home improvements. You get the extra cash in hand, but you will then owe more on your mortgage, and it will take much longer to pay it off.
Credit Cards for Home Renovation Financing
Using a credit card might seem like the easiest option for home renovations, but it can be dangerous. Those high-interest rates can put you into a cycle of debt. Like Mark Cuban once said, “Credit cards are the worst investment that you can make.”
Personal Loans for Home Renovation Financing
All the negatives previously mentioned about home refinancing and credit cards are not true for personal home renovation loans through HFS Financial. No home appraisal or closing is required, and you won’t be putting your house on the line. Whether you find a home renovation contractor who offers financing through HFS Financial, or you apply directly yourself, you’ll be sure to have the funds you need for your wonderful new vision.
Ditch the Staged Funding Process! Find Fast and Easy Funding with HFS Financial.
Many banks that offer home refinancing loans do something called stage funding. This means they will only give part of the funding at a time (they break it up into “stages”). The downside of stage funding is that your home renovation contractor might run out of money before the next stage comes in, which would certainly delay your project.
Fortunately, HFS Financial doesn’t do stage funding! Your home renovation loan will be financed upfront. Find an HFS home renovation contractor partner or apply for your personal funding today.
Plenty of Home Renovation Loan Options
HFS offers financing options to choose from that work for each individual project. After you fill out the quick 60-second inquiry, our experts will contact you so you can pick the best loan to fit your needs.
When you have access to premier financing options through HFS Financial, there just isn’t any reason to complicate your life and your finances with lending that is either frustrating or risky.
Questions? Send us a message or call us at 1-800-254-9560. At HFS Financial, “You Dream It, We Finance It!”