What is a Home Improvement Loan?
Homeowners can apply for home improvement loans for a variety of reasons, including remodeling, updating or making repairs to their home. Loans can be issued for anything as simple as a roof repair, an update to an energy-efficient furnace or a new addition. Repayment for this type of loan can be made in many different ways. A homeowner can take an unsecured loan or use the equity in the home as collateral. A homeowner can also take a first mortgage loan or a subordinate loan. Each scenario is unique and will require careful analysis of the type of financing that may be best suited for the situation.
If You Have Little or No Equity in the Home
- For minor repairs or updates: Your only choice would be an unsecured loan. Since the repairs or updates to the property are minor, the value of