Renovating or making large home repairs can be a smart investment for a homeowner, as the improvements may translate directly to your quality of life and the overall value of your home. Of course, home improvement projects can be expensive, especially for larger remodels like kitchens, bathrooms, and major HVAC repairs. That’s where a home renovation loan can bring your aspirational home to remodel projects to life.

Obtaining a home improvement loan is much like seeking any line of credit with a financial institution, with rates and terms to consider. However, this type of unsecured personal loan differs from home equity loans in that it doesn’t require equity in your home as collateral, and can often be approved in minutes vs. typically days or weeks, and require an appraisal for a home equity loan or home equity line of credit. Getting approved for a home renovation loan can be simple and fast when you work with AmeriFirst.

Home Remodel Loans Made Simple

As an online lender, finding the right home remodel loan with AmeriFirst is as easy as a few clicks. Shop home renovation loans between $2,000 and $80,000, all equipped with generous loan terms and competitive rates, and then fill out the online application to see if you qualify. Much like the ease of obtaining a loan, you’ll quickly realize that making your monthly payments are just as simple with the user-friendly online portal.

Frequently Asked Questions About Home Renovation Loans

What Type of Loan Is Best For Renovations?

There are several options available for homeowners looking for financing to carry out their most ambitious home renovation projects, but when evaluating the pros and cons, a home renovation loan is quickly elevated as the obvious choice. A home renovation loan is the preferable option for most borrowers because it doesn’t require a cash-out refinance, which can impact your interest rate and be affected by market price.  If you don’t need to take out a home equity line of credit, you won’t have to leverage your home to get your financing, and unsecured home renovation loans can often be approved in minutes as opposed to days or weeks with a home equity loan or home equity line of credit (HELOC). Be sure to determine the appropriate amount to take out for your loan. Think through the full scope of the project so you won’t be forced to put additional expenses on a credit card, which can come with high interest rates and restrictive limits. A full kitchen remodel financing is going to have a different scope than a simple painting project. Going with a home renovation loan ensures you’ll be able to confidently get the job done and only increase the value of your home.

How Do Home Renovation Loans Work?

The process to apply for a home renovation loan is very similar to obtaining any other line of credit. You will first fill out an application where your credit score and loan history will be evaluated. This information will then be used to determine the terms and interest rate of your future loan. If you are approved for a home remodel loan, you’ll receive a lump sum of money, which is expected to be paid back with interest over time.

Applying for a loan with AmeriFirst is easy, as the whole process can be completed online in a few minutes.

How Do I Choose The Best Home Remodel Loan?

Determining which home remodel loan is best for you comes down to evaluating the options available. There are many lenders offering home remodel loans, but they all come with their own considerations. Beyond comparing rates and terms, it’s also smart to think about the ease of the ongoing relationship. Is it difficult to fill out a loan application? Is it easy to make monthly payments? When you think ahead about the ease of servicing your home remodel loan, you’ll be able to select a lender that will meet your expectations.

What Are Remodel Loan Rates?

Remodel loan rates, like any type of financing, are determined by a variety of factors and can change daily and based on the applicant. Things like credit score, credit history, loan amount, and market changes can affect loan rates and are taken into consideration when applying for a home remodel loan. It is best to apply for a home renovation or remodel loan with AmeriFirst to find out what interest rate you are eligible for.

What Credit Score Is Needed For A Home Remodel Loan?

Credit score is an important factor when applying for a home remodel loan. Your score will be evaluated and reflected in the loan rate and APR assigned to your loan.

What Is the Average Interest Rate On A Home Renovation Loan?

There are many factors that impact interest rates on home renovation loans, including credit score, credit history, market rates, and more. Interest rates vary between individuals so it’s best to apply for a home renovation or remodel loan with AmeriFirst to find out what interest rate you are eligible for.

Related Articles

How Long Does it Take to Fix Credit Report Errors?

Privacy Tips

Protecting Yourself From Contractor Fraud