How to Get a Home Improvement Loan with Bad Credit

Having bad credit can make a lot of things more difficult for you. However, many of us have suffered from a bad credit score at some point, and sometimes it can be unavoidable. If you have bad credit, you know that life still has to go on, even if it causes some extra challenges for you. This could be something you’re dealing with if you’re a homeowner in need of a home improvement loan. Many homeowners require a home improvement loan to finance their home improvement projects, but this often requires certain credit scores.

Getting help to finance a home improvement project is possible, even if your credit score isn’t great.

Government Home Improvement Loans

Government loans can be a great option for homeowners who have bad credit. Loans for home improvements through the government tend to have more relaxed rules when it comes to the credit you need, so this is something you should keep in mind. However, many government home improvement loans are very specific as to who can get them, although they do offer loans for various situations. For example, you could be able to get government help if you live in a rural area and are renovating your home, which could help if you’re looking for grants for roof repair.

Home Equity Loans 

If you have a lot of equity in your home but don’t have a good credit score for many types of loans, a home equity loan may be able to help. Getting a home equity loan can be easier than getting other types of loans with bad credit because your home’s equity is used as collateral. This can make lenders feel more comfortable loaning you money, even if your credit score isn’t great. If you’ve built a lot of equity in your home, you can also get a decent-sized loan, which can help make larger projects possible. As long as you know that you’ll be able to keep up with the monthly payments, a home equity loan can be a great option. 

Home Equity Lines of Credit 

A home equity line of credit is similar to a home equity loan in that it uses your home as collateral. However, home equity lines of credit act more like a credit card rather than a home equity loan. Whereas home equity loans provide you with one lump sum amount for your project, a HELOC allows you to withdraw the money as you need it over a set amount of time. A HELOC can be more beneficial for homeowners who will need money over time for their project and aren’t sure how much they’ll end up needing. This way, you won’t have to worry about over or underestimating the cost of your project and being committed to a certain amount if you’re unsure about it. If you need help with something like vinyl siding financing and know the exact amount ahead of time, a home equity loan could be a better choice.

Apply for a Personal Loan

You may still be able to get certain installment loans, such as personal loans, even if you have bad credit. These loans can be used for anything you need, making them a good option for those planning home improvement projects. You can use the loan to cover whatever you need to complete your project. However, like any loan you get with bad credit, you could end up paying higher interest rates for a personal loan. Applying for a personal loan with a co-signer could also give you a better chance of getting one and having better interest rates than applying alone. Of course, if you’re able to wait until your credit score improves, you’ll have an easy time getting a loan, but that’s not always an option.

See What Options You Have for Home Improvement Loans Today

If you have bad credit, looking for a good home improvement loan could be difficult on your own. Home improvement loans for bad credit are available, you might just need help finding them. At Homeowner Funding, we know what options are available for people with all types of credit scores, and our team has experience helping homeowners find exactly what they need. Homeowner Funding is an NRIA org, and we can help you find funding options that can be difficult to find on your own. We’ll discuss your situation and what project you have planned to see how we can help make your project possible.

Apply for homeowner funding today to learn more about how we can help. 

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Joe D.

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