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Specialty Loan Types
Home Improvement Loans
A home improvement loan is a loan the purpose of which is to provide funds to the borrower for the purpose of making improvements to an existing dwelling or building on the property securing the loan. They could be things like replacing or renewing important essentials such as windows if the seal has worn, or contacting roofers from companies like https://www.cbchandlerroofing.com/ with professionals in the Glen Allen Roofing area to replace the roof if the tiles have chipped or fallen away. The improvements can be work done to add new attractive features to a property or finance an “addition” to the existing house or some other improvement such as the installation of a swimming pool, a new front door from companies like Doors Plus, or room addition. Of course, homeowners could also use their loan to make some interior changes to their homes too. Perhaps some homeowners want to give their living room a complete makeover. They could use their loan to purchase some high-end furniture from somewhere like Lulu & Georgia (click for more) if they wanted to. It’s up to the homeowner. If they’re on a budget, however, they might wish to go to this site to see if there are any coupons or codes available for some of the most well-known stores in the country, like Target. As long as they are improving their home, they can use the loan to fund most changes.
If the legal requirements for establishing a contractor’s lien (“mechanic’s lien”) are satisfied the funds from a home improvement loan will not be subject to the 80% loan to value limitation that would exist on a home equity loan (to provide funds for improvements) secured by a primary residence in Texas. The maximum loan amount (when combined with all existing loan balances secured by the property) on a home improvement loan secured by a primary residence can be as high as 95% of the appraised value of the property.
A home improvement loan can be loan secured in a subordinate (“second”) lien position in addition to an existing mortgage or it can replace an existing loan in a primary (“first”) and additionally provide funds for the improvements. A home improvement in a primary lien position will have a more favorable interest rate than one in a subordinate position.