Renovation Loans Program
Renovation Loans
Renovation loans program are funds issued on credit to homeowners who want to fix their homes or enhance the value of their properties before getting them to market.
The loan amount obtained can be used to purchase supplies, pay the contractor, or cover other expenditures incurred throughout the renovation process.
The amount you can qualify for this loan product depends on your home’s after-renovation value. In other words, we will not use your home’s current value to calculate how much you can borrow. This makes renovation loans the only product that gives you credit based on your home’s future value.
At GoNoCost, we help our clients understand the difference between renovation loans program in Raleigh and home improvement loans. The latter are ordinary unsecured personal loans or credit card loans that are just rebranded to attract homeowners. These loans come with higher interest rates, limited loan sizes, and shorter repayment periods. And while some lenders will use the two terms interchangeably, they usually refer to two different loan products, so you always want to ask for further clarification.
Types of Renovation Loans
There are three main types of renovation loans that homeowners can choose from. These are:
Home Equity Loans as Home Improvement Loans
This loan type allows you to borrow against the equity in your home. This means that your house will act as collateral for the loan. With home equity loans, you are limited to borrowing up to 80% to 85% of your home’s current value. This restriction makes the loan safer for lenders; hence it attracts a lower interest rate.
Cash-Out Refinance
This type of renovation loan replaces your mortgage with a new home loan for more money than you owe on the original mortgage, presenting you with the difference in cash. Going for a cash-out refinance means you’ll access your equity to acquire some money at closing, which you can use to do home renovations. Like a home equity loan, you can take a cash-out to refinance up to 80% of your home’s total value.
Home Equity Line of Credit
Abbreviated as HELOCs, the Home Equity Line of Credit resembles a credit card loan. It allows you to draw money as needed up to a given limit, where you’ll repay them at a variable interest rate. HELOCs will enable you to borrow up to 85% of your home’s value.
Applying for a Home Renovation Loan in Raleigh
Applying for home renovation loans is simple, quick, and convenient. At GoNoCost, we streamline the loan application process to avoid unnecessary paperwork. Once you have prequalified for the loan, you’ll need to provide some basic personal information, for instance, a Social Security number and proof of income.
And before making up your mind on the loan amount, you want to use the APR to evaluate how much the loan will cost until it matures. Also, consider the loan terms and any fees added to the total loan amount. Luckily for our clients, we do not charge any closing fees or early repayment penalties, which would otherwise hike the total loan cost.
Get Started Today
Once you are ready to take out a home renovation loan in Raleigh, you want to explore the different loan products available depending on the eligibility requirements, loan amount, and loan terms. As a transparent and reputed lender, we strive to ensure flexible loan products that will serve all our customers regardless of their unique needs.
We believe in a transparent and straightforward loan application process powered by technology and aligned with the individual’s financial goals. When you work with us, you save money and enjoy some peace of mind knowing that you are dealing with professionals who’ll put your needs first. Let us know how you want your home renovation loan customized, and we’ll do our best to meet your needs.
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Financing your home is easy. Refinancing it is even easier. You just need to find a transparent lender or a reliable online mortgage advisor to guide you throughout the mortgage financing process. GoNoCost Mortgage has those people.