Home Improvement Loans

   
   
 

Get Home Improvement Loan Rates


A home improvement loan for remodeling can provide tax deductible money for either a complete home remodel, a loan for specific home improvements, which may increase the value of your property based on the type remodeling projects, as well as functionality.

The way it usually works is by using equity from your owner-occupied home, and the lender pays you the full cash amount of the home improvement loan at closing, which can be used to pay for projects as needed. 

Home improvement loans are used to improve existing residential property, which is different than construction loans for building new structures.

Lenders normally do not place any restrictions on your improvement projects, as long as they conform to your local building requirements. You have the choice of completing the work yourself, or using a licensed contractor.

Get Free Mortgage Quotes

If you are doing major home improvement that requires a larger loan amount, remember that long term fixed rate payments can make loans easier to pay off over an extended period of time.

If you only want to borrow a relatively small loan, and pay it off quickly, a line of credit can provide more flexibility with the convenience of withdrawing money in variable amounts as needed. However, variable loan rates have the potential of increasing. Lenders usually offer terms in 5 year increments, and the equity requirement varies, as high as 100% of appraised value. 

When a loan is secured by a home that is your primary residence, the interest portion of the payments may be deductible up to 100% of the value. Check with your tax advisor for details.