Whether you’re looking to install new windows or upgrade the siding on your St. Paul or Minneapolis area home, you still need a way to pay for it unless you've been saving money ahead of time. These options may help you figure out the best way to pay for exterior remodeling. Home Equity Loans For Remodeling Based off of the value you’ve gained in your home over the years, this loan is paid back monthly. However, this type of loan has plummeted in popularity with the market crash between 2007 and 2008. Home Equity Line of Credit – HELOC Much like home equity loans, HELOCs are also based on your home’s equity. However, you will only need to pay off what you spent on your renovations instead of the full amount of the loan. In this respect, it’s a lot like using a credit card to pay for your new roof, but with a potentially far lower interest rate. HomePath Renovation Mortgage Loan If your current mortgage is through Fannie Mae, you may be able to get a HomePath Renovation Mortgage Loan. These loans require a 3% down payment which can be funded by gifts, grants, your savings, or loans from government organizations and employers. It’s also applicable to primary, investment or second homes. These are available for up to $35,000 for renovations alone and don’t require mortgage insurance. 203(k) Loan for Home Purchase & Renovations If you’re looking to purchase a new house or refinance one you already own, but want to borrow more for home renovations, you can get a 203 (k) loan for up to 96.5% of the property’s value after the work has been completed. This option isn’t very well known, but it’s still a very good option to check out. Every situation is different, but each of these options is helpful in paying for exterior home renovations. Quarve Contracting, Inc. is a full-service exterior home improvement contractor specializing in green remodeling. We offer high quality remodeling options including steel roofing, fiber cement siding from the James Hardie Company, and energy-efficient windows and doors for homes and businesses in the greater St. Paul/Minneapolis metro area.
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