Home Improvement Loans

1. Home improvement loans increase the value of your home.

When utilizing this type of funding with the specific intent of increasing the resale value on a piece of property rather than making it more comfortable, be sure that the home improvement will add the value to the home that is desired. For example, a kitchen improvement will recover the money spent and more, whereas adding a pool may not.

2. Home improvement loans are not tax deductible.

Financing of this sort can provide a tax deductible way for improving a home the way it is desired while at the same time increasing the value of the home. It is wise however, to consult a financial advisor or tax expert regarding the interest deductions. There should also be a preliminary appraisal done to ensure the increase in the home's value. There are typically no restrictions for home improvement, as long as they are within the boundaries of local building requirements. The funds for improvement to a home can be used to do the work yourself, or hire a contractor.

3. Equity is required for home improvement loans.

There is no equity required. The maximum loan amount for a home improvement financing can go as high as 125% of the current value of the home. Since the loan is essentially used for making improvements to the property, a major advantage is to write off the interest being paid on monthly payments.

4. Lenders of home improvement loans place restrictions on your home improvement projects.

Lenders typically place no restrictions on any home improvement projects, as long as they are within the boundaries of the local building requirements.

5. As with all matters, it is wise to get counsel when considering home improvement loans.

Proverbs 19:20 - Hear counsel, and receive instruction, that thou mayest be wise in thy latter end.

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