Whether you just finished moving in or you’ve been living in your home for decades, sometimes it needs a little extra TLC. But home improvements—from massive projects to smaller fixes—can be costly, and funding isn’t always available in your bank account. To upgrade your home without breaking the bank, here are a few options to finance home renovations on a limited budget.
Ask for quotes.
Whether you’re interested in installing a new roof or upgrading your siding, it’s important to contact contractors to ask for quotes before making a commitment. According to the experts at MLM, a Chantilly roofing company, asking for quotes and shopping around for attractive financing options can help homeowners avoid stress over the cost of remodeling.
In addition to an itemized quote, it’s also essential to ask about warranties and timelines. Remember, things happen—and the last thing you want is to spend money on a new roof only to notice something that needs to be fixed again in a couple of months. Choosing a reputable company that prioritizes customer satisfaction and offers a workmanship warranty can help you avoid potential problems later on.
Take out a loan.
Home improvement loans are unsecured loans offered by online lenders, banks, and community credit unions. Because home improvement loans are unsecured, you won’t need to put your house up as collateral to qualify. Most lenders determine your interest rate and loan eligibility based on your credit score, and funding comes relatively quickly. Once you agree to the terms of the loan, most lenders deposit money into your bank account within a day.
Because home improvement loans often have shorter loan periods, lower amounts, and fewer fees than some other options, like home equity lines of credit (HELOCs), they’re typically best for small and mid-sized home projects, such as kitchen makeovers and gutter replacements.
Use your credit card.
If you’re planning a small home renovation project, like hiring a contractor to install a new shower door, using your credit card is one of the best ways to finance home improvements. Some credit cards, such as 0% introductory APR cards, offer no interest for the first few months, enabling you to finance minor home improvements without ever paying interest. Many credit cards also offer great rewards for new cardholders. For example, if your card offers cashback perks, the more you spend on your home, the more cashback you could earn.
If you’re sitting on a couple of thousand dollars, consider investing it rather than spending it on a new bathroom vanity or an updated kitchen sink. Exploring your investment options now can give you the time—and budget—to plan for a major home improvement project later on.
If you’re not sure where to start, Yieldstreet, an online investment platform, offers investors access to alternative investments in commercial real estate, marine projects, and even fine art, with a minimum investment typically starting at $10,000 for accredited investors and $5,000 for nonaccredited investors. Sure, Yieldstreet seems like a great investment opportunity—but is Yieldstreet legit?
Instead of allowing investors to purchase a piece of commercial real estate property, Yieldstreet crowdfunds the debt taken on to finance those investments—along with a wide range of other deals. If you’re planning for a major home improvement project down the road and don’t require cashback for a few years, Yieldstreet can help you find income-producing investments and diversify your portfolio.
Whether you decide to fund your home improvement project with a credit card or open a Yieldstreet wallet, it’s always a good idea to research all of your options to help you make the best financial decision. Ultimately, how you decide to finance your home renovation depends on your individual financial situation and the size of the project.
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