This may come as a surprise to you but over 65% of Americans own the house that they live in. That number continues to rise as the economy strengthens and consumers are feeling more bullish about investing in the American dream.
Just because you live in a house though doesn’t mean that you’re living well. There are plenty of people that live in homes that feature holes in their roofs, busted windows and other unsightly/dangerous problems.
The best way to deal with problems like those is by paying for home improvements. In order to foot that bill though, you’ll need the help of a renovate credit card, a loan or other cash-generating mediums.
Here is what we suggest.
- Pay For Your Home Improvements Out of Pocket
If you have cash for your home improvement projects, you’d be best served using it… Usually.
You see, paying for your home improvements out of pocket means that you don’t have to borrow any money. Not borrowing almost always means dodging pesky interest payments.
The downside of paying for things cash is that you’ll deplete your money reserves which could cause issues for you if you need to call upon a lump sum of money in an emergency later on down the line.
- Government Loans
Government agencies offer homeowners loans that carry low interest rates. They do this to help low/medium income owners pay for improvements that they may otherwise not be able to afford.
Most government loans are not income restricted so even as an affluent borrower you may benefit from government programs.
Some counties even offer HIP loans (home improvement loans) which carry long terms and 0% interest rates to incentivize homeowners to beautify their houses and the local community.
- Private Loans
There are a number of private lenders out there that will write you a check for your home improvement project.
That check of course comes with strings attached. Namely, the interest that you have to pay and fees that you’ll encounter if you violate any of your loan’s terms.
Taking out a loan from a private lender for home improvements is pretty common so this might be something you’d like to look into.
If you’re worried about credit checks, there are organizations online like Bonsai Finance and other entities that offer no credit check loans. These loans tend to be for smaller amounts and carry more aggressive interest rates.
- Renovate Credit Card
If you’re an adult, chances are you’ve used a credit card. Just like how some credit cards are targeted at travelers, there are a number of cards that are for home renovators.
You can find a renovate credit card online pretty easily and you’ll enjoy the fact that it’ll likely offer cash back on home improvement supplies, contractor payments and other building expenses.
Home Depot even offers a renovate credit card that you might want to look into.
- Friends and Family
If you’re having trouble getting the money that you need for an expense that’s really putting a damper on your ability to live well, friends and family might be able to help.
It’s always tricky borrowing from friends and family because not meeting their expectations could cost you your relationship. That’s why we recommend going this route only if your home upgrades are absolutely necessary.
We’re willing to bet that you know at least one person that would lend you a hand if you had a roof that was caving in over your head.
- Borrow Against Your House
Do you have equity in your house? If you do, you could give the bank some of that equity in exchange for cash.
This process is called refinancing and it can net homeowners tens of thousands of dollars quickly so that they can pay down their home improvement expenses.
There’s not much downside to refinancing your house. Just ensure that you shop around for a lender that’s willing to offer you the best refinance rate so you don’t end up leaving money on the table.
Our final means of scoring home upgrades is one that, similar to borrowing from friends and family, should only be used if you’re running into a serious emergency.
Crowdfunding sites like GoFundMe are used frequently for people that are hard up for cash and suffering. If you have a roof, for example, that’s leaking water into your living room and it’s affecting your kid’s quality of life, share that story online.
By letting people know what kind of hardship you’re facing, you may be able to rouse support from strangers which could net you the funds that you need to get your house fixed.
We can’t stress enough that you shouldn’t be using crowdsourcing to get yourself that kitchen island that you’ve always wanted. Calling on the charity of strangers should be reserved for only the most serious of things.
If you crowdsource when you’re not really hard up, you could be taking away from somebody that’s facing a much more grave situation.
Wrapping Up the Best Ways to Pay for Home Upgrades
The best ways to pay for home upgrades that we’ve covered off above vary but are all effective.
Try your hand at one or two to see which fundraising method works best.
Just ensure that if you’re borrowing money, you do so responsibly. Many people have taken on private loans from predatory lenders and have ended up in horrendous financial situations.
Need more tips on how to get a renovate credit card, how to get a loan or how to pay for the stuff that you need? Check out additional content on our website to get the inspiration you’re looking for.