Home improvement loan, as classified by the reporting institution, is a loan made to a property owner for home improvements, such as maintenance and repair, additions and alterations, or replacement of existing equipment or any other structural elements in the home.
So, if you are thinking about improving the existing home, home improvement loan is the best idea for the purpose of improving your existing home. A home improvement loan is not only the easiest and cheapest way to make improvements to your home, but there are various other benefits also, such as this loan can be repaid over any term between 5 and 25 years.
It all depends on your available income and the amount of equity in the property that is to provide the security for the loan. There are combined efforts from every level including government, non-profit and other aid organizations to help homeowners.
For example, the Section 203(k) program is the Department’s primary program for the rehabilitation and repair of single-family properties. According to this section, the borrower can get just one mortgage loan, at a long-term fixed or adjustable rate, to finance both the acquisition and the rehabilitation of the property.
According to HUD (U.S. Department of Housing and Urban Development), to improve a multifamily structure, the maximum loan amount is $12,000 per family unit. But remember, it should not exceed a total of $60,000 for the structure. However, please note that these are fixed-rate loans, for which lenders charge interest at market rates and the interest rates are not subsidized by HUD. The good news in this regard is that there are some communities that voluntarily participate in local housing rehabilitation programs and they provide reduced-rate property improvement loans through various lenders. So better to contact them.
There are many financial institutions, banks and other independent lenders who can give you these loans. They are not easy to obtain, but there are many tax benefits also which are attached to home improvement loan. These benefits make the loan very attractive by lowering the effective interest rate by 2 to 4%. Therefore, if you are planning to undertake the repair, remodeling, extension of your house, home improvement loan can be your perfect choice.
However, it is always better to take advice of some professionals like an architect or a structural engineer for improvement or extension, because it is beyond the capacity of a normal person to calculate the actual cost.
Moreover, any structural change in the existing buildings and dwellings requires a clearance from the municipal authorities, so proper documentation is a must. Not only the lenders and banks may also require this, but such municipal authority clearance and documentations along with your structural map.
So, don’t be in haste to apply for the loan unless you know what kind of repairs you want to carry out. And always be prepared for a fair groundwork and shop around for better deals.
By: Rakesh Sharma Jack
Posts Tagged ‘Existing Home’
Home Improvement Loan – The Easiest and Cheapest Way to Make Improvements to Your Home and Much More
March 15th, 2010Soundproofing Techniques – Home Improvements With Big Payoffs
December 3rd, 2009
You can find soundproofing techniques both for individual rooms and for your entire house, and the selections of which ones are most suitable for you situation will depend on three factors: where your home is located: what sort of noise you want to eliminate: and how much you can afford to spend.
Soundproofing Techniques For New Homes
If you are having your home built, you can get an early start on soundproofing it by having your doorways staggered so that none of them is directly across from another one. In doing so, you’ll prevent the noise from one room from being transmitted across a hallway and echoing around the home’s interior. You should also request that your contractor design each room so that at least 25% of it will be taken up with sound-absorbing materials like draperies, carpeting, or furniture. If you can afford it, also request that your walls and ceilings have soundproofing mats installed.
Soundproofing Techniques For Existing Homes
If you are trying to make an existing home quieter, and are bothered by noisy floors on the upper stories, you can remove the ceilings beneath them and add triangular wooden strips to both the floor joists and the floors themselves. You can also consider using a liquid adhesive to secure the squeaky floorboards so they move around less.
Another of the commonly used soundproofing techniques is to frame back-to-back walls with a double set of disconnected wall studs, and add some fiberglass insulation to deaden sounds. If you live in a traditionally framed home, your wall framing and drywall will allow sound to pass through your walls from one room to another. The wall studs attached on one side of the drywall will transmit the sounds from one room through it into the drywall of the other room to which they are attached.
You can dampen the sound transmitted in this fashion by installing fiberglass batts, but in order to eliminate it completely, you’ll have to put up a separate set of studs for both the walls, so that the noise from one room can’t be transmitted to the drywall of the other.
Soundproofing Techniques For Windows
In addition those you use on your walls, ceilings, and floors, you should find some Soundproofing techniques to employ on your windows. Think about using both vinyl window frames and double-paned glass, because although you’ll pay more for double panes, you’ll be rewarded with both quieter and a more energy-efficient house.
Finally, one of the soundproofing techniques which will not only make your home less noisy, but add an attractive privacy accent to its interior, is to install shutters on the insides of your windows.
By: Eric Henry