Each and every home needs some work no matter how “perfect” it may seem when buying it. Over time, you will start to notice things deteriorate which you will have to fix, remodel, or upgrade. In order to do so, you don’t need to spend too much of your hard-earned savings because a VA loan for home improvement is the answer. It works similar to a traditional loan with home equity, but there are still some points that you need to know before getting one. Listed below are the points that will be further discussed.
TGUC Financial can help you find a home improvement contractor as well as assist you with financing house improvements.
1. Consider the chances of getting a better deal
There are two ways you can get a home improvement loan. One is while buying your home, you can add it to your mortgage. The other one is adding it as a second mortgage or also known as junior lien. Adding it to your mortgage will not allow the charged interest rate to be higher than your primary mortgage, which does not apply with second mortgages. Increased chances of saving quite a sum of money may be your end result.
2. Using your VA home loan in getting your home’s mortgage current
If your mortgage payments are becoming too overwhelming for you, these loans are not for bailing you out but only to help with improving your home. While taking supplemental loans, sticking to your payment schedule may be mandatory. But still, there are cases where such supplemental loans can be used to get your mortgage current in case you’re falling behind on payments or are in default.
3. Over 30 years of repayment period
Home equity loans generally have 5 to 15 years when it comes to terms. On the other hand, VA loans for home improvement have a 30-year period for financing options, making monthly payments lower for you.
4. Approaching a different lender means a wait for VA approval
If you choose to use another lender other than the one you’re already using for your first mortgage, or going to one that’s not VA-approved for automatic loan closure, you may need to wait for the VA’s loan approval.
5. Solely for veterans with VA mortgage
You have to be a veteran with a house that’s been bought with a VA mortgage.
6. Using a VA home loan to fix problems in your home
Simply put, these loans are for making significant improvements for the sake of your property’s livability. Therefore, you cannot use these home improvement loans to add a swimming pool or anything that increases the value of your house.
7. You can take both your original mortgage and a VA home loan out at the same time
Taking these two loans out at the same time is ideal especially if you notice that your home will be needing some remodeling or repairs when you buy it. Whether the house is on short sale, a fixer-upper, or foreclosure will not matter.
So with all 7 of these pointers, you can be sure that you can handle the VA Improvement Loan process without problems.
TGUC Financial Home Improvement Loans
A VA home loan isn’t always the best option. TGUC Financial can help you find a home improvement contractor as well as assist you with financing house improvements. TGUC Financial has loan opportunities for homeowners across the credit spectrum. If you are a homeowner and you need a home improvement loan, we can compete with other financial institutions and offer you a loan. Whatever your credit score, contact us today.
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