Best Home Improvement Loans In Texas

How Do Home Improvement Loans Work in Texas?

There are two types of home improvement loans that a homeowner can borrow in Texas:

• Secured loans.
• Unsecured personal loans.

Homeowners have different requirements and limitations with these options. If you are borrowing a home improvement loan, you should understand the monthly payments, credit score requirements, and interest rates.

Many think that home improvement loans refer to unsecured personal loans, but you can borrow secured loans for home improvements. Let us look into both secured and unsecured home improvement loans in Texas.

What are the Best Home Improvement Loans in Texas

Unsecured Personal Loan in Texas

An unsecured loan for home improvements offers a loan amount for homeowners with no collateral. Homeowners need not worry about the risk of foreclosure while borrowing unsecured personal loans because the loan doesn’t make your home as collateral. Some unsecured personal loan lenders offer loan amounts with the credit score since there is no equity percentage required.

TGUC Financial

TGUC Financial offers one of the best unsecured personal loans for homeowners. Homeowners have fewer requirements with TGUC Financial personal loans.

You don’t need to have an excellent credit score and credit history to borrow home improvement loans from TGUC Financial. Additionally, with TGUC Financial, you can also select contractors for your home improvement projects.

• Once you apply for the home improvement loans with TGUC Financial, you get the exact loan rates.
• TGUC Financial offers home improvement loans for minor and major renovations. Even if you want to add luxury items to your home, TGUC Financial is the best option.
• This loan option doesn’t require you to make extra payments like origination fees, closing costs, and prepayment penalties.
• TGUC Financial approves your application quickly for emergency repair. You don’t have to follow a lot of procedures, your loan amount is just three clicks away!

Amegy Bank Personal Loans

Amegy bank personal loans is a no-collateral loan that doesn’t have prepayment penalties. The loan borrowers should select states Texas to get the rates and offerings. This loan option provides loan rates for every state.

• Homeowners have fixed terms and interest rates in Amegy Bank.
• You will have a scheduled repayment term for different personal expenses.
• Homeowners must fill in the employment details for the qualification process.
• The loan borrowers should be permanent residents of Texas.

Truist Bank Personal Loans

Truist Bank is one of the online lenders with fixed interest rates and consolidating high-interest debt benefits.

• The current annual percentage rate in Truist Bank is from 4.99% to 15.59% APR.
• If you want to get qualified for the lowest interest rates, you must have an excellent credit score.
• The loan terms and APR in the Truist Bank differs based on the loan amount you are borrowing.

Secured Loans in Texas

Homeowners borrow loans for improvements by making the collateral of their homes. If a loan lender is lending you the loan amount with collateral and equity percentage, it is a secured loan and the collateral protects the loan amount.

Home equity loans and home equity lines of credit are secured loans with collateral. 

Difference between Home Equity Loan and Home Equity Line of Credit

Home equity loans and lines of credit allow homeowners to borrow money against collateral. A home equity line of credit (HELOC) focuses on the credit line of a borrower. The fixed payment in a home equity loan revolves around principal and interest and provides a lump sum to borrowers. 

• Homeowners may use home equity loans for both home purchases and improvements.
• Your home’s equity percentage converts to cash.
• The interest in the home equity loan is tax-deductible.
• The difference between a home equity loan and a line of credit is the interest rates. Home equity loans have a fixed interest rate and the line of credit has fluctuating rates.

Frost Bank Loan

Frost Bank in Texas offers two types of loans for borrowers: collateral and non-collateral loans, and collateral loans are secured loans. A homeowner can use their homestead property or second home as collateral to borrow the loan amount and may borrow amounts for larger properties with this option.

The minimum loan amount you can borrow with a Frost Bank is around $2,000. Frost Bank doesn’t ask for prepayment penalties, annual fees, and legal fees to borrow the loan amount. The maximum loan amount is up to $50,000 with a 4.74 APR percentage.

First Service Credit Union

First Service Credit Union(FSCU) allows homeowners to borrow money with their assets. This financing option also provides a low rate compared to secured loans.

The interest rate in FSCU is low compared to the other secured loans mentioned in the article. The interest rate doesn’t fluctuate like a home equity line of credit(HELOC). FSCU also has flexible loan terms for homeowners, and you can choose a range of up to 20 years to pay back your loan. You will have an APR as low as 6.24% for a loan amount of more than $25,000 in the term of 11-20 years.

Randolph Brooks Federal Credit Union

RBFCU (Randolph Brooks Federal Credit Union) offers secured loans for home improvement projects such as energy-efficient installations, adding luxury items, and roof remodeling work while offering fixed interest rates.

RBFCU Home Improvement Loan Rates

• 4 yrs Home Improvement Loan – 3.950% to 5.060%APR.
• 7 yrs Home Improvement Loan – 4.150% to 4.808% APR.
• 10 yrs Home Improvement Loan – 4.250% to 4.724%APR.
• 15 yrs Home Improvement Loan – 4.500% to 4.833% APR.

Can You Get a Home Improvement Loan in Texas with a Poor Credit?

If you have an excellent credit score and equity percentage, you may qualify for most financing options.

On the other hand, if you want to borrow a loan amount with a poor credit score in Texas, then TGUC financial is the best choice because they offer you a personal loan with no minimum credit score. 

Are there different rules for home improvement loans in Texas?

Yes, homeowners have a different set of rules for every financing option for home improvement projects in Texas. Secured loans don’t ask for excellent credit scores since you are borrowing a loan amount against your property but a credit score is significant for borrowing in most unsecured personal loans.

In the same vein, the rules and regulations for home improvement loans vary between lenders which is why homeowners must check the requirements of every lender. 

Frequently Asked Questions

What are the cheapest ways to borrow home improvement loan amounts?

Unsecured loans and government loans like FHA (Federal Housing Administration) are some of the cheapest ways to borrow home improvement loans since these loan options involve fewer risks.

What is the minimum credit score requirement in Texas?

The credit score requirements vary from one lender to another in home improvement loans but a homeowner should have a credit score of around 620 to borrow FHA loans.

What are the requirements for a cash-out refinancing option in Texas?

A cash-out refinance option is suitable for homeowners who have enough equity percentage in their homes. The DTI (Debt to Income) ratio should be around 45% and the credit score should be above 620 to borrow the amount from cash-out refinancing.