Remodeling budget: what to do if your dreams are bigger than your wallet
An old house without frequent maintenance or an accident may lead to an emergency repair or remodel in an awful financial moment for the homeowners. And what about that long deferred improvement project that is waiting for the right time? With a good advice from a contractor -and a little help from our friends- you won’t need to wait any longer, even if your home improvement dreams are bigger than your budget.
Include the upgrade in your mortgage
You want to buy that fixer upper but cannot pay for the remodel? You can apply for the 203K Rehabilitation Mortgage Insurance, that can cover both the cost of your home and money to pay for its repair. Money goes to an escrow that the contractor receives as soon as the project is finished. For the house you already live in, ask your bank if they can combine your existing mortgage with financing for home construction or major repairs. The best part of this setup is that your lender will want to make sure that both your home, proposed repairs and contractor meets its underwriting standards.
Apply for incentive programs
For energy efficient upgrades there are plenty of programs that let you make your wishes come true with different amounts needed upfront and flexible financing. Go Solar California: The New Solar Home Partnership provides financial incentives and other support for the installation of solar panels in residential buildings. Hero Program: This program provides financing for energy-efficient and renewable energy products. Is the best option to upgrade HVAC and appliances that will pay themselves on savings from utility bills. Energy Upgrade California: Is like a hub for plenty of financing options and incentive programs for energy efficient home improvement. For all of this programs, you will need a certified contractor that complies with all their standards and can walk you through the application. The best feature of choosing one of these financing options is that most programs can be transferred to next owners, so they impact directly on your home’s valuation.
Most banks offer direct loans for home improvement nowadays, but they can be costly -and we already established that money IS an issue-. This is the least recommended option, but it can be suitable if you know you can cancel the loan in advance, within few months with your annual bonus, for instance. The better way to get a direct loan or just plain financing for the job needed is rely in a company that offers both the contractor services and finance consultants. From no down payment, to low payments, Treeium can offer you an assessment that combine your available budget with a forecast in savings, tax rebates and incentives to reduce the investment to the minimum.
But there are some cases in which the story is so moving that money is not needed. Meet Allan, one of Treeium customers that just need some little help from a friend.
There are plenty of financing options for a home upgrade, and we are very happy to help you reach your goals within your budget. Do you need any help with your credit or know anyone worth helping? Leave it in the comments because #TreeiumGivesBack