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9 Reasons To Finance Your Home Remodeling Project

Posted October 21, 2015 by EnerBank USA


Let’s face it: even cash savvy homeowners often may not have all the money they need on hand for an unexpected repair or replacement like a new furnace. The same holds true for home remodeling projects. There are always the nice to haves that weren’t budgeted for or the unforeseen conditions that lurk behind walls, under floors or below shingles.

So, what are some other ways to pay for your project? Fortunately, there are a variety of ways to pay besides just plunking down a credit card or incurring the expense and enduring the hassle of going to the bank for a home equity line or cash-out refinance.

Financing your project with an unsecured installment loan is a great way to fund your project, and here are a few reasons why.

1. You Can Get the Amount You Need

For projects between $15,000 and $50,000, unsecured installment loans are the way to go, according to Credit Karma. These loans offer higher amounts than most credit cards do, so you are able to get the project done right.

Best practices dictate that you should always allocate more money to your budget than you may think you need. Add 10 percent for any surprises that may arise and another 20 percent into the contingency for unforeseen fees or extra labor.

Make sure your budget can account for these expenses so you don’t end up having to cut corners.

2. No Payment and No Interest Options

Many banks no longer offer unsecured installment loans. Only a small percentage offer Same-As-Cash Loans. These no payment and no interest payment options defer interest and payments for a period of time. They are a great bridge to a future financial event like receipt of an incentive, income tax refund, annual bonus, etc.

Sometimes, life gets in the way of your plans. You may have an emergency due to a heating system breakdown or find a water leak in your basement. By choosing to finance your project, you are able to get it done when you need it so that you don’t end up with a bigger or more difficult project because you had to delay it to save all of the necessary funds.

3. Simplify Decision-Making

If you have good credit, you can increase your buying power through an unsecured installment loan, which makes decision-making easier.

Instead of compromising on your home improvement project, get the most value out of having been approved for an unsecured loan and make decisions based on what is right and what you want.

4. Qualify Quickly and Easily

Unsecured installment loans are quick and easy to apply for, so if you’re in a bind, you know you can get the money you need to get the repair or project you want.

Unlike home equity loans, unsecured installment loans don’t require any collateral. Instead, you can choose from a Same-As-Cash Loan or find a low monthly payment loan that works best for you.

5. Reduce Closing Costs

Put your money where it really matters with an unsecured loan. This type of financing often has no closing costs or processing fees, so the entire amount of your loan actually goes to the project, not to bank fees.

6. Take On Larger Projects

Because unsecured installment loans have larger loan amounts, longer payback periods and often lower fixed interest rates than credit cards, you have the financial flexibility to upgrade materials, get additional work done, or complete the entire project now without waiting or future disruptions.

7. Don’t Reduce Your Equity

Home equity loans come with a number of negatives. They are often tied up in transaction fees and closing costs. Sometimes they even have a pre-payment penalty if you pay the loan off early.

They can also reduce your equity. Equity is a homeowner’s interest in his or her property, determined by subtracting the loan balance from the appraisal. When you take out additional loans on your house, you hurt your equity and reduce your ability to use those funds for other pressing needs.

You can avoid reducing your equity by using unsecured installment loans to finance your home remodeling project.

8. Start the Job Right Away

If your home improvement project is spurred on by an emergency, or if you’re on a tight deadline for completing the project, every day counts.

Unsecured installment loans can speed up the payment process so that your project gets started right away; no waiting for a secured loan or line of credit to process before you can start your remodeling job.

9. Increase the Value of Your Home

Remodeling jobs are good for increasing your home’s value. If you are interested in selling your home, quality remodels can especially be a huge boost to your bottom line.

Improvement projects in the kitchen, bathroom additions, and energy efficient changes can add significant value to your home. In many cases, though, the project wouldn’t be possible without financing to get the job done.


It would be great to have the cash to fund every remodeling project or repair you want or need to do, but that’s often not the case. Financing your home improvement project can be an excellent way to get your dream job done.






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