10 Lending Companies & Banks to Get Home Improvement Loans – Building Finance

10 Lending Companies / Banks to Get Home Improvement Loans – Building Finance

If you have plans to renovate your house or make changes to the interior design, one of the things that may hinder your plans is lack of financing. Unless you have surplus savings that are not attached to your household savings account, you will be required to look elsewhere to find funding.

Before you apply for a remodelling loan, you have to estimate the cost of the required renovations. Consult a construction cost estimator or home designer to take site measurements and photos of places that need to be upgraded, altered or improved. For example, if you only want to make changes to the living room, you will need to take room measurements – the length, width and height.

The home designer should prepare sketch plans, and together with the site information and photos, the estimator can prepare a cost estimate or renovations bills of quantities. The homeowner should then use the cost estimate to apply for a loan, hence before you visit a bank or financial institution, you must have the project costs with you.

Home improvement loans are one option that you can use to finance your project. The following are 10 financial institutions to apply for a home renovations loan:

Prosper

Prosper is a loan company based in the USA. It operates in most states except West Virginia, Iowa, North Dakota and Maine. The company has 10 types of loans available for clients, and one of these is for people looking to renovate or remodel their dwelling. You can secure a loan for home repairs, kitchen and bathroom remodelling as well as furniture upgrading. External works such as decks and gardens are also covered by the loan.

To apply for a loan, just visit the website, and fill an online form. On the form, you are required to enter the value of the renovation cost, select home improvement from the drop-down list and put your credit score. There are 4 credit scores – poor, fair, good and excellent. If your credit score is fair and above, your chances of approval will be high. Submit the form to get a quote. Prosper offers loans from $2000 to $35,000.

With Prosper, the annual rate charged for borrowing (APR) depends on the loan period, the applicant’s credit rating and amount of loan. To keep the APR low, you have to maintain a good Prosper credit rating.

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BECU

BECU is a financial organization that offers banking, loans, mortgages and investment products. If you are looking for home refurbishment loans, the company offers two types of loans in this category. The first type of loan that you can opt for is the Home Equity Line of Credit (HELOC). This loan is obtained by attaching your home or house as collateral. Home Equity is the value of your home minus liabilities. The BECU HELOC is an open-end loan, meaning that you are allowed to withdraw any amount of money up to a certain limit according to your needs. This type of loan is useful for an ongoing project that requires maintenance, for example repairing or renovating a home. Facility management requires both a short term and long term maintenance plan during the life cycle of a building to ensure its longevity, and to maintain its market value. With a HELOC, you will have access to funds when you need to do some improvements on your property. BECU offers a HELOC up to $500,000, the default interest rate is variable, but you can choose a fixed rate that will prevail from now and the future. An applicant who has been approved for this loan will only start paying back the owed amount after the draw period has lapsed.

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