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How to Finance a Virginia Home Improvement Project
A home is a great investment and probably your biggest one. Over the years, prices have always increased and there is no reason to believe that won't continue.. Maintain your property, keep it up to date, and make improvements over time to protect your investment.Loan Options:
Home Equity Line of Credit
A home equity line of credit is bank account you set up with a mortgage lender that you can use for home improvement projects. The interest rates are usually very good. But you need to have equity in your home in order to get the line of credit. Sometimes a homeowner will use a line of credit to complete of the home improvement project. After the project is completed the home value increases, and then the homeowner can refinance the home mortgage and home equity line of credit into one home mortgage.Construction Loan
A construction loan is another loan given by the home mortgage companies. Payments on this type of loan are usually paid from the loaned amount until the home is re-occupied. In basic words, if you borrow $20k and the payments are monthly at $500, then the $20k is used to make those payments. So if the project takes 6 months to complete, the borrowed amount of $20k is reduced by $3k for the 6 payments of $500.The Title I Property Improvement Loan Program
If you do not have enough equity in your home and a construction loan is not right for you then a FHA Title I loan might be the answer. FHA loans are HUD insured. This is also a great loan for small home improvements like a new heating unit. To find an FHA-approved lender in your area, call HUD's Customer Service Center on our toll-free number: (800) 767-7468 (TTY: (800) 877-8339)