How to Afford Your Home Improvement Project

We all dream of owning the perfect home that matches all of our expectations. Unfortunately, reality doesn’t always work out that way. Maybe you couldn’t afford a home with new, updated appliances, or your bedrooms are outdated. No matter how you want to improve your home, you might have struggled with the cost of home improvement projects. Big design shows on TV make it seem easy and affordable to renovate your home! Once you start counting the numbers, you’ll quickly realize this isn’t the case. Luckily, there are a lot of ways to afford your home improvement project that you might not have thought of!

Home Improvement Loan

Home improvement loans are a great idea if you have a particularly big renovation in mind. Maybe you’re planning to renovate a fixer-upper or you’re overwhelmed by a number of repairs. Home improvement loans are known as FHA 203k loans and they can help offset any unexpected costs that are likely to arise during a large project. Review home improvement loan rates to see how much it will cost for your particular project.

Home Equity Line of Credit

If you’ve decided a home improvement loan isn’t the right choice for you, you might consider a HELOC. A HELOC or Home Equity Line of Credit is a way to borrow against the value of your home. It’s not like refinancing your mortgage, and instead you recieve a line of credit which can be up to 80% of your home’s value. This credit is minus the amount of your home loan, and you can spend your line of credit during a time frame known as the draw period. Speak to your mortgage lender about HELOC options to learn more.

Modify Your Project

One of the best ways to afford a home improvement project is to modify the project itself. Sometimes you can get so overwhelmed with the scope of a project that it’s hard to know what’s really necessary. Many times you don’t need to complete the full extent of the project to feel a positive improvement in your home! For instance, maybe you wanted to replace the flooring for your entire home but decide instead to only update the flooring in the living room and hallway. This is still a big update without the same big price tag!

DIY Your Improvement

While you can’t always DIY your project, there are some instances when you’re more than capable of doing things yourself. With the internet, there are more resources than ever before for aspiring do-it-yourselfers! While it’s best to hire a professional for things like electric and plumbing, you can usually handle any cosmetic changes yourself. If you must hire a contractor, save money on labor by doing prep work yourself! You might be able to lower the cost just by doing a lot of the easier stuff on your own! 

Don’t Choose Premium

Do you really need granite countertops or the newest appliances? There are a lot of areas where you can cut costs with your home project simply by choosing a lower grade material. While you shouldn’t choose the cheapest option if you want your home improvement to last, there is often not a difference between midgrade and premium materials. Instead of spending money on premium improvements you might not need, spread your money farther with the right materials.

Home Improvement Project Success

You don’t have to go broke to create the home of your dreams. With lending options and project modifications, you don’t have to compromise on quality. Home improvement projects tend to get expensive fast! Make sure you’re prepared for everything by doing your research, shopping around, and borrowing when necessary! Your home will feel like yours in no time!