When you are looking into repairing your home, there are loans set up to help with this specific need. These types of loans may come in a variety of guises. They all share one common interest though, and that is it will be based upon your home value and the money borrowed being used to provide home improvements, remodels, and other projects that will increase the value of your property by a substantial amount. For this you should look into a guaranteed home improvement loan.

A Secured And Unsecured Guaranteed Home Improvement Loan

To be able to get a guaranteed home improvement loan for a large amount, it will more than likely be a secured loan. The amount that you will be allowed to borrow is generally subjected to the amount of equity than you have in your home or property. The amount loaned to you will also depend on your ability to repay the loan itself. The lender will need to see your employment history, as well as income status. A lender will only approve a homeowner improvement loan under the agreement between the borrower and lender that the loan amount will be used to make home improvements to your home that will increase the value of the home on the market.

An unsecured home improvement loan is the same type of loan as a secured except the amount that you will be loaned will be much smaller. It generally requires that you have a positive and a long-standing business relationship with the lender that would offer you the loan. The actual loan would be more like a personal loan than a standard home improvement loan. Some uses for a guaranteed home improvement loan include bathroom remodeling, kitchen remodeling, interior decorations and room or home additions.

Terms Of A Guaranteed Home Improvement Loan

Usually a guaranteed home improvement loan will be offered as a secured loan, which means the equity in your home or property is used to secure the loan to the lender. The amount that you will be approved for will be determined on a couple different factors. One factor is how much the improvements done to your home will increase the value of your property. Another might be how much equity you have in your home. A secured home improvement loan is usually offered at a lower interest rate than personal loans are. Mostly in due in part that the loan is of higher value due to the equity compared to numerous other types of collateral.

Home improvement loans are very similar to mortgage loans. They may even have the same lender, but do not let this confuse you. They are still a spate loan from your mortgage. Mortgage lenders are usually in agreement with home improvement loans as it helps with improve on the home that they technically own until the mortgage payment is paid off. A guaranteed home improvement loan is normally available with a repayment period of two to twenty five years. Though it depends on the amount that you are approved for and whom the lender is and what their terms are.