Financial advice on Home improvement for people living in the US

Making home improvements is a great way to enhance your home value. That value will allow you to make a tidy profit when you sell your home especially when you are living in the United States. However, before you even think of implementing any home improvement projects, you have to consider financing. Where are you going to get the money for such projects? How much will you need to remodel your home completely? You cannot afford to have half-done projects. Selling your home for a higher value will become impossible after that. You will end up losing money in two fronts.

financial advice on home improvements


Finance options

You need to have a figure that you can use when getting the financing that you need. This will depend on whether you will be putting work into your home or using a contractor. If contractors will be used, ensure that you get a variety of estimates of labor, supplies, and tools and calculate the average. If you know what you are doing, do your research on the estimated price for tools and supplies before calculating the average.

Always add at least 10% to the average estimated cost of everything. Anything that can go wrong will most likely do so when you are making home improvements. You need to be prepared for any eventualities.


If you are being thrifty, then cash is automatically the best option. Seeing where your money is going will rein in your impulses. This option is best when you have ready cash and want to begin your home improvements immediately. It helps if the cash was already saved up in a high interest-earning account.

Cash however, prevents you from earning future interest on your money. Once you remove it, consider it gone forever.


Loans are tricky when it comes to home improvements. You want to ensure that you pick out the best loan for the lowest price possible, without compromising your home improvement projects.

The FHA Title 1 loans

The FHA loans are a great option if you want home improvements that are not luxurious in nature. You will need to find a FHA-insured lender in your area. You can get a loan of up to $25000 for 20 years at a fixed or adjustable interest rate. These are subject to negotiations between you and your lender, so do your research.

Consider FHA-insured loans for fixer-uppers and necessary home improvements.

Home equity loans

If you have built some equity into your mortgaged home, a home equity loan can be a great financing option. You can borrow up to 80% of the appraised value of your home to improve your homes at a fixed interest rate. You can then pay off the debt monthly as a second mortgage payment.

If you have good equity and plan to live in your home for a while, the home equity loans are a good idea.

Line of credit based on home equity

You can obtain financing from a revolving credit based up to 80% of your home equity. Setting up the loan will cost you. The interest rate will be variable. However, this loan is convenient because it is accessible at any time you need it. You can use it over a long period for home improvements whenever you need them.

Author bio:-

Katherine lives in UK and is an avid reader and blogger. Since her early years she’s had a passion for writing.  Her areas of interest are Home improvement, Travel and Lifestyle. She works as a guest blogger on her chosen areas of interest and currently writes on behalf of ESTA.

Erin Emanuel