4 Ways To Fund Your Home Renovation

Owning a home comes with lots of satisfaction and joy. While your home may suit your needs, at some point, there always

Owning a home comes with lots of satisfaction and joy. While your home may suit your needs, at some point, there always comes a time when it will need upgrades and improvements.

But even minor home renovations can be costly, and finding the money for all the improvements you want can be challenging. However, with creative thinking, proper planning, and taking a serious inventory of your finances, it's possible to make your home renovation dreams come true. Here are four ways to fund your home renovation.

Get a Personal Loan

Even if you have less than perfect credit, getting a personal loan to cover all or a significant portion of your home renovation project is possible. If you have assets to use as collateral, getting a personal loan can be much easier, or you may want to find a cosigner for the loan. A personal loan may not cover the entire home renovation cost, but it can set you in the right direction.

Refinance Your Mortgage

Refinancing your existing mortgage is an excellent way to get a lower interest rate on a new mortgage and simultaneously cover the costs of your home renovation. An FHA(203) Mortgage allows refinancing your first mortgage and combines it with home improvement costs into a new mortgage.

Get a Construction Loan

Construction loans can be more complicated than a mortgage, but getting a construction loan for a new addition or renovation to your home is possible with the right lender. Construction loans are short-term loans with higher interest rates that cover the cost of building or rehabilitating a home. The lender will pay the loan to the builder or contractor in installments. Once the work is completed, the loan is generally paid in full or converted into a mortgage.

Use Your Credit Cards

If you have a credit card with a high credit limit or several credit cards with small or no balances, you can use your credit cards to finance your home renovation projects. The upside to using your credit cards is that you don't have to apply and wait for loan approval, and you can get reward points. If you're going to use credit cards to fund a renovation, use your cards for purchasing materials only, keep projects small, and do most of the labor yourself.

Don't go overboard when planning your home renovation; most importantly, stick to your budget. It's also a good idea to tackle one space at a time if you're on a tight budget, but with persistence and dedication, you can have the home you've always dreamed of having.

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