Does your house still have the same beauty that attracted you to it when it was still a new home? If you’ve been living in your house for 10 years or more and haven’t remodeled it yet, the chances are it’s due for a revival project. It would be nice if homes never needed home improvement projects, but like all things, they suffer wear and tear with years of use. So, if your house is showing signs of aging, it’s time for you to start thinking about planning a remodeling project to restore your home’s original luster.
Many homeowners struggle with how to pay for their remodeling project, which is understandable. A full home remodeling project can cost anywhere from $15 to $60 per square foot and last anywhere from seven to 15 months, depending on the size of the house. Moreover, no one wants to start on a remodeling project and run out of money before they have a chance to finish, which happens more often than you may think. So, can you afford to remodel your house and make it look like a new home again? Continue reading to learn about some ways you can pay for your remodeling project without busting the bank.
You can pay for renovations with a bridge loan if you’re planning to sell.
One of the most common reasons for someone to remodel their house is they’re trying to sell it. If that sounds like you, you might be able to get a bridge loan to cover the cost of your remodeling project. So, what is a bridge loan? It’s a type of loan that people normally get to buy a new home while still trying to sell their current home. You repay the bridge loan with the sale of your current home rather than having to take out a second mortgage.
You can pay for minor renovations with your credit card.
If you’re only planning a small remodeling project, you might be able to cover the entire project with your credit card. Let’s say you’re only remodeling your bathroom and need a new shower. You can pay for your shower replacement with your card and avoid high-interest rates by paying off your card balance by the end of the month. However, your card isn’t a great option for paying for large home improvement projects.
You can get a home equity loan to cover the cost of renovations.
If you’ve been living in your home for a while, you can get a home equity line of credit (HELOC) to pay for your remodeling project. A HELOC allows you to use your home equity as loan collateral. If you fail to repay your loan, you could end up paying for your house all over again.
You might be able to qualify for government loans.
If your home is relatively new, you won’t be able to get a HELOC, but that doesn’t mean you can’t get a loan to pay for your home repairs. You might qualify for government loans for people who don’t have much home equity. Do your due diligence to find out what kind of government programs you’re eligible for.
There are many ways to pay for a remodeling project, but careful planning is the key to a successful home improvement project. The more time you spend planning, the less time you have to spend worrying about having enough finances to finish your project. If you have a lot of equity in your home, you can get a bridge loan to cover the renovations and have enough money left to put some in your pocket. You can also try to qualify for home equity and government loans or save until you have enough to pay for your project. You can also use your credit card for small purchases and payments. As you can see, with careful planning, you can afford to remodel your home.