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Home repair loans offer borrowers an affordable way to finance home improvements or repairs. Whether a home repair is a necessity or you are hoping to increase home value, home repair loans can be the best financing option. Home repair loans allow you to save your cash for a serious emergency. Most home repair loans offer competitive interest rates ranging between 5% to 36%. Most lenders base interest rates on credit history and income information. Making home repairs or improvements can increase your home value. This means home repairs and improvements are well worth the investment in most cases. Keep reading to learn more about home repair loans and how they can help you.
What is a home repair loan?
Most home repair loans are unsecured personal loans that can be issued without providing any collateral or money down. However there are some types of home repair loans that use your home as collateral, which can be risky. In most cases, using a personal loan for home repairs is the best option for home repair financing. MyKukun partners with an elite group of reliable lenders that can offer home repair loans for all credit types. MyKukun’s lending partners offer home repair loans up to $100,000 paired with competitive interest rates and terms up to 12 years. If you are looking to save money on interest you should consider a shorter loan term or early loan payoff. Most personal loans do not have an early payoff penalty. This means you can pay the loan off early without facing harsh penalties and save money on interest charges. Most home repair personal loans do not have any spending guidelines. This means you can use the funds for just about any home repair you dream of. So what type of home repairs can you finance? The short answer is just about any home repair can be financed.
Types of home repairs you can finance
A home repair loan can be used to finance just about any home upgrade or fix. Before applying for a home repair loan you should have an idea of how much money you will need. Once you are approved for the loan, you should receive the funds as a lump sum. Once the funds are issued, interest will most likely start accruing. This means you should borrow the money when you are ready and try to borrow the right amount. Let’s take a look at some home repairs you can finance and what they may cost…
#1. Kitchen remodel or repair
Kitchen remodels are one of the most popular and most satisfying home remodels. Remodeling your kitchen can increase your home value significantly. In addition, upgrading kitchen appliances can decrease your monthly electricity bill. Whether you plan on repairing or replacing appliances or remodeling an entire kitchen, you can use a home repair loan. Kitchen remodels can range between about $13,000 to $35,000. If you are remodeling a large and lavish kitchen it may cost upward of $50,000.
Read more: Kitchen remodel financing
#2. Bathroom remodel
Most of us start our days in the bathroom, making it an important space to properly upkeep. From bathroom plumbing and electrical to bathroom fixtures. bathrooms can be pricey to repair. In addition, if you experience a leak or damage in the bathroom it’s likely other parts of the room will need replacement. Similar to a kitchen remodel, a bathroom(s) remodel can significantly increase your home value. On average, smaller bathroom remodels typically cost about $10,000. Larger and more comprehensive bathroom remodels can cost $15,000+.
Read more: Loans bathroom remodel financing
#3. Roof replacement
On average, a new roof can increase home value by about $12,000. In addition, a new roof can give your home enhanced curb appeal that can attract more buyers. While you may not recoup your entire investment, you should recoup at least 60% or so of the original investment. Installing a new roof can help your home sell faster. It can also help the home inspection process go smoother. However, if you can get by with just repairing your roof it should be much cheaper. Most roof repairs cost between $150-$5,900+. Roof replacement can cost as little as $5,000 or as much as $25,000+. The cost of roof replacement depends on the materials and size of the roof. Homeowners can use a home repair loan for roof repair or replacement.
How do you finance major home repairs?
If you need to finance major home repairs you should visit MyKukun. MyKukun partners with trustworthy lenders that offer home repair loans for borrowers. You can submit one application through MyKukun and receive multiple personalized home repair loan offers without affecting your credit score. MyKukun provides a free service that can help borrowers receive the best home repair loan offer while saving borrowers tons of time and hassle.
How to pay for home repairs (what are the options)?
There are a few ways to pay for home repairs, some being less risky and easier than others. One of the easiest ways to pay for home repairs is using cash. However, it’s understandable if you do not have enough cash on hand or perhaps you would rather save your cash for an emergency. There are many reasons why homeowners turn to financing when it comes to home repairs. If you have equity in your home you may want to consider a home equity line of credit (HELOC) or home equity loan. When you use a HELOC or home equity loan you are borrowing against your home and using it as collateral. Personal home repair loans do not require homeowners to provide collateral or down payment, making them a safer option. Let’s compare home repair loan options…
#1. Home equity line of credit (HELOC)
A HELOC loan provides homeowners a revolving line of credit that can be used for home-related expenses as needed. Similar to a credit card, you only pay interest on the amount of money you use. When you use a HELOC loan you are borrowing against the equity in your home and using your home as collateral. This means if you cannot repay the loan you risk losing your home. HELOC loans can be riskier for homeowners than lenders. Due to the decreased risk for lenders, HELOC loans are usually offered with very low interest rates.
#2. Home equity loan
Similar to a personal loan, home equity loans give you access to a lump sum of money that can be used for home repair. Although home equity loans usually have lower interest rates than personal loans, there is more risk for the homeowner. Homeowners must use their home as collateral meaning they could face foreclosure in the event of a missed loan payment.
#3. Personal loan
If you want to avoid using the equity in your home to secure a loan you should consider a personal loan for home repair. Most personal loans are unsecured and can be used for just about anything. Personal loans involve more risk for the lender meaning they may have higher interest rates than other options. However, you may be able to justify the higher rate when you consider the little risk, flexible terms, and easy qualification criteria If you have no equity in your home, a personal loan may be one of your only options for financing home repair.
Read more: Share secured loan
What is the best loan for home repairs?
In most cases, the best loan for home repairs is a personal loan. All credit types can qualify for personal home repair loans. Borrowers do not need to provide collateral or down payment. In addition, some lenders can fund personal home repair loans as soon as 24-hours.
Pros and cons of home repair financing
When making big decisions, you should consider the pros and cons. If the pros outweigh the cons for you then we highly recommend you should apply for a home improvement loan.
- Easy to qualify for
- Fast funding
- Flexible terms
- Fixed payments
- No collateral
- Increase home value
- Taking on debt
- Higher interest rates
- Origination fees
How to get a home repair loan?
You should apply for a personal home repair loan through MyKukun. If you have a 580 or higher credit score you may qualify for a home repair loan. To increase your chance of approval you can add a cosigner to your application. The cosigner should have decent credit and consistent income.
In conclusion, home repair loans are easy to qualify for and can provide the funds you need quickly. If you don’t have a lot of equity in your home you should use a personal home repair loan. MyKukun can help borrowers discover the best personal home repair loan offers in minutes. MyKukun also offers many helpful tools including a remodel estimator and customized tips on how to get your home ready to sell.
Discover the best home repair loans…visit MyKukun today!
Read more: First time personal loans no credit history