Home Improvement Loans in Houston Near Me
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Home Improvement Financing in Houston For Good & Bad Credit
If you live in or own a home in Houston, Texas and need a home improvement loan, you are in the right spot. After this easy read, you’ll be ready to apply for a home improvement loan. In addition, you’ll be well-educated on your options and the going interest rates. Whether you have just purchased a new home or have owned a home for decades, it may need some repairs or improvements. Home improvement loans can be used for just about any home improvements or repairs ranging between $1,000 to $100,000. Investing in your home can increase home value and make it more desirable. This can help justify the additional cost of using a home improvement loan. Year after year, experts are reporting increasing home values in Houston, thus giving homeowners even more reasons to make home improvements.
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If you live in or own a home in Houston, Texas and need a home improvement loan, you are in the right spot. After this easy read, you'll be ready to apply for a home improvement loan. In addition, you'll be well-educated on your options and the going interest rates. Whether you have just purchased a new home or have owned a home for decades, it may need some repairs or improvements. Home improvement loans can be used for just about any home improvements or repairs ranging between $1,000 to $100,000. Investing in your home can increase home value and make it more desirable. This can help justify the additional cost of using a home improvement loan. Year after year, experts are reporting increasing home values in Houston, thus giving homeowners even more reasons to make home improvements.
What kind of loan is best for home improvements?
While one type of loan may be best for one homeowner, another type may be best for another homeowner. While it would be easier if there was a universal home improvement loan option that was best for everyone, there is not. The type of home improvement loan that is best for you usually depends on your finances. If you have 20% or more equity in your home, you may want to consider a home equity loan, home equity line of credit, or cash-out refinance. If you do not have equity in your home you should use a personal loan for home improvements, also known as a home improvement loan. Regardless of the type of loan you choose, you need to make sure you can cover the monthly payment. Each type of home improvement loan has its own set of pros and cons. A little later on we will compare the top 5 home improvement loan options.
Which is better: home equity loan or home improvement loan?
For some homeowners, a home equity loan may work better and for others, a home improvement personal loan may work better. If you are trying to decide which option is best for you, you can start by asking yourself a few questions. Do you have equity in your home? Are you willing to borrow against your home in exchange for a reduced interest rate and longer term? If the answer to both of these questions is yes then a home equity loan may be better for you. However, if you do not have equity in your home or do not want to use your home as collateral, a personal loan may be better. In addition, if you have credit challenges a personal loan may be easier to qualify for. The consequences of defaulting on a home equity loan can be more severe than the consequences of defaulting on a home improvement loan. If you default on a home equity loan you may lose your home.
Are Home Improvement Loans a Good Idea?
In most cases, home improvement loans are a good idea. There are only a few reasons why we would recommend against them. If you cannot cover the monthly payment, a home improvement loan is probably not a good idea. In addition, if you have a high debt-to-income ratio, you may want to pay off other debt before using a home improvement loan.
How does a home improvement loan work?
Most lenders fund home improvement loans as a lump sum of cash that can be repaid over time with interest. If your home improvement loan is issued as a lump sum you will most likely pay interest on the full loan amount. We recommend getting an accurate estimate and applying for just the right loan amount. This can help homeowners avoid paying extra interest.
Our Top 5 Home Improvement Loan Options
Houston homeowners should use one of our top 5 home improvement loan options. Once you learn a little more about each option, it should be easy to narrow down the option that is best for you. Although the cheapest way to pay for home improvements is paying cash, it may not be an option for all of us. In addition, some homeowners have the cash but would rather save it for an emergency. Home improvement loans can offer low interest rates and flexible terms, thus making financing an attractive option. Borrowing money for home improvements may cost more over time but it's likely that homeowners will recoup their money when it's time to sell. Here are our top 5 home improvement loan options.
Home Improvement Loans
Home improvement loans are the number one choice for many homeowners in Houston. Home improvement loans are unsecured personal loans. Since home improvement loans are unsecured, you won't need collateral to qualify. To qualify for a home improvement loan all you need is a decent credit score, reasonable debt-to-income ratio, and consistent income. Most banks, credit unions, and online lenders offer home improvement loans. If you own a home in Houston and want a home improvement loan you should visit Acorn Finance. Acorn Finance has reputable lending partners that can help all credit types obtain home improvement loans. Homeowners can receive multiple personalized home improvement loan offers within minutes without affecting their credit score. Borrowers that use online lenders have more options available. This forces online lenders to be more competitive. Online lenders typically have faster application and approval processes. In some cases, online lenders can fund home improvement loans within one business day. Homeowners can obtain home improvement loans up to $100,000 with terms up to 12 years and rates starting at just 6.99% at Acorn Finance.
Home Equity Loans
Home equity loans may have longer terms and lower interest rates than home improvement loans. Home equity loans are secured with collateral making them riskier for the borrower. Similar to a home improvement loan, home equity loans are usually issued as a lump sum that is repaid over time with interest. Home equity loans can have more complicated and longer processes. Most lenders offer repayment terms between 5 to 30 years and allow homeowners to borrow 80% to 85% of home equity. This means you'll most likely need to have at least 20% equity in your home to qualify. If you default in a home equity loan you can risk losing your home. Homeowners may be able to qualify for a home equity loan with an interest rate as low as 3.25%.
Home Equity Line of Credit (HELOC)
A home equity line of credit is similar to a home equity loan in the sense that you'll need equity in your home to qualify. A home equity line of credit is also similar to a credit card in the sense that you'll have access to a certain amount of money. However, you should only pay interest on the amount of money you use. For example, if you have a $200,000 HELOC and you only use $50,000, you should only pay interest on $50,000. Most lenders loan between 75% to 90% of the available equity in your home. Homeowners can obtain HELOC loans with interest rates as low as 2.49%.
Cash-Out Refinance
Homeowners in Houston can use a cash-out refinance to finance home improvements. Compared to other options cash-out refinances can be more difficult. However, if you qualify for a cash-out refinance it may provide the money you need for home improvements while lowering your mortgage payment. If interest rates are lower than when you took out your current mortgage, you can lower your interest rate and monthly mortgage payment. Similar to HELOC's and home equity loans, cash-out refinances require homeowners to have a certain amount of equity in their home. If you use a cash-out refinance you will refinance your mortgage and borrow money at the same time. When you complete your refinance, you will receive a check. The balance of your new mortgage will be higher than your old one. The difference between the old mortgage and the new mortgage balance should be the amount of the check you received, plus any closing costs in the loan. Homeowners will most likely have to pay closing costs on the entire loan amount.
Credit Cards
In most cases, credit cards are better for minor home improvements or repairs. If you can pay the balance off within a few months, you may be able to find a credit card with a promotional period. Some credit card companies may offer an introductory 0% interest period. However, if you are unable to find or unable to qualify for a credit card with a promotional period you should seriously consider other options. Credit cards typically have much higher interest rates than other options.
Conclusion
In conclusion, home improvement loans are a top choice for Houston residents. Homeowners can secure personal loans up to $100,000 within minutes at Acorn Finance. In addition, home improvement loans can be used for a primary residence or rental property. In order to qualify for a home improvement loan, you should have a minimum credit score of 620 or higher. Acorn Finance has lending partners that can help all credit types secure home improvement loans.
Get pre-qualified for a home improvement loan in minutes. . . apply online today!
- Complete and submit a short loan application online
- Receive multiple pre-qualified offers
- Get connected with lenders to obtain your pre-qualified loan
Other home improvement loans in Texas:
- Home Improvement Loans in Texas
- Home Improvement Loans in Dallas
- Home Improvement Loans in Fort Worth
- Home Improvement Loans in San Antonio
- Home Improvement Loans in Houston
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How do you compare Houston home improvement loans?
Just as you carefully shop contractors, you will want to carefully shop home improvement loans too. The three main sources for home improvement loans are:
- Online lenders/financial institutions
- Banks
- Credit unions
Comparing loans online is often more convenient and faster than working with traditional banks and credit unions. However, some banks and credit unions are making advancements in effort to compete with the rise of online lenders. Secured loans typically come from banks and credit unions, whereas unsecured loans commonly come from online lenders or sources.
At Acorn Finance you can check home improvement loan rates within 60 seconds or less with no impact to your credit score. Take advantage of the opportunity to access offers from top national lenders all in one place.
What are the best home renovation loans in Houston?
Houston, Texas is home to a growing residential market. As homeowners flee to more affordable destinations, housing prices continue to rise. As a result, the demand for home renovations is steady. Some homeowners may be under the false assumption that home renovation loans are extremely hard to get, but that’s not always the case. Knowing where to look can help expedite the process. Additionally, understanding the types of home improvement loans can help too.
Before setting out for a home renovation loan, get an estimate and determine how much you need to borrow. You should also review your budget to determine what you can afford to repay.
Once you know what you’re looking for, you can work on finding the best home renovation loan in Houston. There’s truly no one size fits all answer for what’s best, as it will ultimately come down to what you qualify for, your ability to repay, and your needs.
Home improvement loans are generally categorized as secured or unsecured. Let’s review to help you determine which option might work best for you and your situation.
- Secured Loans: Secured loans are backed by collateral. This can include home equity loans or a home equity line of credit (HELOC). Home equity loans are generally funded as a lump sum that is to be repaid over a predetermined period. A HELOC on the other hand is a revolving line of credit that you can draw on, up to the specified credit limit. You are only responsible for repaying what you borrow. Secured loans offer protection for the lender. In the event the borrower defaults, the lender can seize the collateral. The collateral can then be sold to help the lender recoup their funds. This added layer of protection can allow the lender to offer more favorable terms for the borrower. However, the borrower assumes risk by providing collateral. For larger loan amounts you may need to use a secured loan.
- Unsecured Loans: Unsecured loans are not backed by collateral. Personal loans are an example of unsecured loans. Unsecured loans usually have faster funding times, since they are based on creditworthiness. Unsecured loans may present higher APRs for borrowers, but less risk since they do not have to provide collateral. If you default on a loan, secured or unsecured, your credit score can be negatively impacted. For emergency repairs, home improvement loans can be a viable option if you can receive funding quickly.
What are Houston home improvement loans?
Houston home improvement loans are exactly what they sound like - loans that fund home improvements. While some lenders are exclusive to the state of Texas or Houston, other lenders can serve multiple states. Before applying with a lender you’ll want to make sure they serve the Houston area. Home improvement loans in Houston are often used for the following repairs and improvements.
How do home renovations loans in Houston work?
Home renovation loans can be secured or unsecured. How the loan works can vary depending on the type of loan the lender’s process. In a nutshell though, home improvement loans can provide the funds you’re approved for to fund a home renovation. Before the loan is funded the repayment period is typically determined and terms are disclosed. Here’s an overview of the steps you can expect to take while getting a home renovation loan.
- Prequalification: Getting prequalified is the first step toward getting a personal loan. Prequalification means you can qualify for the loan, but there are contingencies. The lender still needs to confirm your creditworthiness. This can include verifying identification, income, residency, and other details. Oftentimes you can get prequalified without an impact on your credit score.
- Acceptance: Offer and acceptance…make sense, right? If you’ve found an offer you wish to move forward with, you’ll likely need to accept the offer officially. The information originally provided should match the supporting documentation. Keep this in mind as you submit information to get prequalified. You will want to ensure you can prove things such as your address or income in the event the lender asks for documentation.
- Approval: After accepting the loan, the lender can examine your creditworthiness in more detail. This is known as the underwriting process. Once a loan is approved, review the final offer to ensure nothing has changed since the original offer. If the lender has any concerns, they can revise or revoke the initial offer. For example, if your income does not match the information provided or pulled, this could cause them to decrease the loan amount.
- Funding: At last, the part you’ve been waiting for - your funds are ready. Some lenders can deposit funds directly to your account. At Acorn, our lending partners can fund loans in as little as 1-2 business days although funding times may vary.
- Repayment: Approximately 30-45 days after funding repayment typically begins. Repayment schedules should be predetermined. Setting autopay up for your loan can help ensure you never miss a payment. Additionally, some lenders can offer a discount for setting up autopay. If possible, pay more than the minimum each month to pay down the principal faster. Just be sure the loan does not have prepayment penalties before doing so.
Are home improvement loans in Houston worth it?
Home improvement loans are worth it for some homeowners. Only the homeowner(s) can determine if it’s worth it though. As you evaluate the decision, consider your needs, ability to repay, and cost of the loan. Taking it one step farther, consider the outcome of not making the improvement or taking the loan versus the opposite. Checking real offers can help you determine if a home improvement loan makes sense. Visit Acorn Finance to check rates that you actually qualify for with no credit score impact.
Why choose Acorn Finance for comparing home improvement loans in Houston?
Houston homeowners have access to competitive loan offers, and Acorn encourages you to explore those options. By taking advantage of our advanced lending platform you can check rates in seconds with no credit score impact. With access to top national lenders and home improvement loan offers up to $100,000, depending on credit score, Acorn Finance empowers Houston homeowners. If you value your time, and money, visit Acorn to find the best home improvement loan offers.
One home, endless possibilities
