Financing Your Project

There are many choices for paying for home improvement and home repairs.  It is recommended that you never pay by cash and checks should be made out to the company you have contracted with and not an individual. However, do to the cost, may projects may require financing .To obtain financing for your home improvement project you may want to consider a personal or bank loan, a home equity loan, a loan from your credit union or insurance company, or a loan from a savings and loan institution. While your contractor may be able to assist you in securing the needed financing, it is important that you investigate the various sources of funding and compare the amounts, interest rates, terms, and tax considerations.

If you cannot pay for a home improvement project without a loan, it is a wise idea to put a clause in your contract with the contractor stating that the agreement is valid only if financing is obtained.

Federal Housing Administration (FHA) loans for home improvements are available through certain banks and other lending institutions. However, FHA requires that the lender approve any contractor associated with the loan request and will not guarantee the work or the contractor. Be wary of any contractor who tells you that he/she has been approved or endorsed by the FHA.

If your home improvement project results from an accident or natural disaster that is covered by insurance, check with your insurance company to determine the extent of coverage before signing a contract to have the damages repaired.

For additional information on mortgages, click http://www.broward.org/consumer/mortgage.htm