Home Repair Loans
Home repair loans are great for those emergency leaky roofs or the shingles that have gone beyond their twenty years and just need replaced. These lending agreements are also wonderful for that driveway that needs blacktopped again or a swimming pool that needs a new liner or perhaps electrical wiring that is thirty years beyond its prime. This special lending agreement is important for the over 70% of Americans who live pay check to paycheck and do not have savings to cover these kinds of major expenses. Living paycheck to paycheck means, in most cases except for the very destitute that debt has enslaved our country and our citizenry must count on loans for those much needed maintenance projects on the largest single investment most of us have. So what are the best places to look for these lending agreements?
If a person has stellar credit, the best home repair loans come from a bank offering a home equity line of credit. These lending agreements, nicknamed HELOCS by the financial world, are also offered by credit unions and are loans based on the equity a person has in his/her place of residence. These borrowing offers are among the most favored by financial experts because in the case of banks and credit unions, the interest rates are quite reasonable and while no borrowing is always a good way to avoid the trap of debt slavery, these HELOCS are the best in terms of loans. What percentage of the home equity a bank or cu will offer depends form institution to institution. Some may allow 70% of the equity and some may allow 50% to be used as the amount of the loan. These lending agreements are packaged as actual checking accounts on which the borrower can draw checks for the home repair needed, although the HELOC is not required to be used solely for home repair, so after the roof is finished a Bahamas vacation might be in order!
One of the things that need to be kept in mind about a HELOC from a bank: an above average credit report score needs to be presented by the borrower. In many cases, a score of 640 or above is required for consideration as well as a debt to income ratio of no more than 40%. In order to figure the ratio out, compare monthly income to monthly debt payments including the mortgage. If the debt payments are above 40%, the ratio is considered unacceptable by banks and perhaps by credit unions, although they are a bit less stringent in their requirements for lending money for home repair loans. A HELOC will require an appraisal of the house and have closing costs. The HELOC will be a revolving charge, just as a credit card is, and will be, in most cases, a variable rate of interest. One of the attractions for a HDELOC is that the interest paid each year on the loan is deductible, just a mortgage interest is.
Home repair loans are also available for those with credit scores that are under the bank's threshold of comfort. Lending companies that are funded by high risk investors are also a good source of borrowed money, but the interest rates and points charges will be much higher. The loan companies typically found at strip malls are often national in scope, but also sometimes privately owned. These companies are regulated by the federal government and operate within the legal guidelines of the law and will often over look sullied credit scores and higher debt to income ratios. In this particular arena, a willingness to pay perhaps twice the bank interest rate may land a borrower the money needed for the home repair needed. "Know ye not that to whom ye yield yourselves servants to obey, his servants are ye to whom ye obey; whether of sin unto death or obedience unto righteousness?" (Romans 6:16)
For the one who is fiscally challenged and the roof does need repair but a high interest loan is just not feasible, the federal government does have some low interest home repair loans to offer those who can prove financial hardship. These particular home repair loans are offered by the Department of Housing and Urban Development, also known as HUD, and are administered locally by housing authorities and nonprofit organizations. These loans are often administered with four percent interest making them extremely amenable to those strapped with monthly bills. If a person is interested in these kinds of lending agreements, the local library can probably help guide a person to finding local HUD representatives.
When the phrase was coined "There is no place like home," there was probably no way of conceiving how many times the words would be repeated by weary families arriving home in their van in the middle of the night after two weeks on the road. Having one's own familiar space is beyond description and so when something goes wrong with the wiring or the furnace or the roof or the water pipes or the foundation, the whole thing can be a little unsettling and home repair loans become very important because certainly the routine of everyone is upset. NO wonder people often frantically look to find the best home repair loans that can be quickly accessed. For the child of God, Jesus promised that each of us has a room in the Father's house. Imagine, one's own space, taking God over two thousand years to get ready for those who have trusted Jesus Christ as their Savior and Lord. For the Christian, the day of death means the light is on and the Father is at the door waiting to show us to our own room near Him. How cool is that?