Home Improvement Loans in Maine

Aside from home equity loans and personal home improvement loans, there are also government loan programs that can help individuals obtain the cash they need to make repairs or upgrades to an existing home, or a home they intend to purchase and renovate. These types of government loans can be found through HUD, the FHA, USDA, and VA. Each government loan program has its own minimum requirements for qualification as well as income restrictions and other regulations that need to be followed in order to obtain the funding.

For loans $100,000 personal home improvement loans are a popular choice. Since they are not backed by collateral, they are fairly quick and easy to secure. The specifics of how a home improvement loan works varies depending on the loan type, lender, and terms. Most home improvement loans are funded as a lump sum minus any fees and repaid in fixed monthly installments with interest. Secured loan options such as home equity loans or HELOCs may have more restrictions. Before finalizing your loan you should ask any questions you may have. Understanding the terms is an important part of being a responsible borrower.

There are many benefits to obtaining a home improvement loan in the state of Maine. One of the main benefits is having the opportunity to build up your credit score by making on-time payments on the loan. Every on-time payment is a credit to your credit score that can help you obtain credit in the future. Payment history makes up around 35% of your total credit score.

Here are some of the other benefits that you may want to consider when taking out a home improvement loan in Maine.

• Make your own monthly payment: With so many home improvement loan options available, you’ll have the opportunity to shop offers. As you shop offers you’ll notice a variety of monthly payments, thus allowing you to choose the one that fits best in your budget. Keep in mind though that just because a monthly payment is lower, does not mean that the loan is cheaper. Keep an eye on total loan costs.
• Know when your debt is clear: With a home improvement loan, you will know exactly when you will be able to pay off the loan. As long as you make all of the payments on time and in full, your debt will be clear at the end of the loan term. With credit cards, if you simply make the minimum payments, you could be paying on your home improvement project purchases for years while racking up high interest at the same time.
• Competitive interest rates: If you have good to excellent credit, you have an opportunity to lock in a really low-interest rate on a home improvement loan.
  Preserve savings: Borrowing money through a home improvement loan allows you to access the funds you need without depleting your savings account. Afterall, not all emergencies allow for financing so prepare for real times of need by preserving your savings.

Anytime you take on a new loan, you should be well aware of not only the pros but also the negatives that come with the financial commitment. Here are some of the main disadvantages of getting a home improvement loan.

• Consequences for default: Anytime you default on a loan, you can do some serious damage to your credit score. With home-secured loans like home equity loans and HELOCs, not only will you ruin your credit, but you will also be at risk of losing your home.
• Interest: If you can afford to pay for your home improvement project with cash, that is by far the cheapest method. Interest can be expensive, and if you have bad credit, it can end up costing you even more in the long run.

To apply for a home improvement loan you can visit your bank, a local credit union, or find an online lender. Online lenders are known for fast funding and convenience. When sharing information online, always be sure you are working with a trusted lender. To eliminate the risk of illegitimate lenders, take advantage of platforms such as Acorn Finance. At Acorn Finance we vet all of our lending partners and create a competitive environment for consumers to access offers through. Here are some basic steps to securing a home improvement loan in Maine.

1. Check your credit report and make any improvements that can boost your score
2. Determine how much you need to borrow
3. Get prequalified and compare loan offers
4. Choose the offer that works best for you
5. Finalize the offer by getting approved
6. Wait for the funds to hit your account
7. Pay back the loan plus interest through monthly installments

Depending on the type of home improvement loan, you can use the funds for pretty much any type of home remodeling or repair project you would like. With a personal home improvement loan, if you receive the funds with the intention of completing a renovation but an emergency expense pops up that you cannot ignore, you can go ahead and use the funds for that unplanned expense. Secured or government loans may have spending restrictions or require plans up front. Always check with the lender before taking out a loan.

Home equity loans and home equity lines of credit typically allow you to borrow anywhere from 80% to 90% of the total equity in your home, depending on the lender. Personal home improvement loans can be for loan amounts of up to $100,000 and loan terms of up to 12 years. Ultimately the amount you can borrow will depend on what you qualify for. What you qualify for can vary by lender, thus reinforcing the importance of comparing offers.

Many homeowners who are looking to increase the resale value of their home or to increase its curb appeal find that home improvement loans are worth it. A home improvement loan gives you the cash you need to complete the project now while allowing you to pay it off over time through monthly installments. We always encourage homeowners to consider their own circumstances before taking out a loan. While it’s a smart idea for many homeowners, it’s not always the best idea. Make sure you can justify and follow through with the commitment.

To confidently choose what you believe is the best offer in Maine, you’ll need to shop around. One of the most convenient ways to shop is online. When you’re ready to start exploring offers, visit Acorn Finance. Our lending partners can offer home improvement loans up to $100,000 with competitive APRs. When you check offers at Acorn Finance, you can receive multiple personalized offers with no impact on your credit score.