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The idea of renovating a home can be traumatizing, especially in depressed economic times. If you are considering revamping your home, obtaining funds can seem almost impossible, especially for low-income earners. However, there are numerous sources of funds available for home renovations:

  1. Mortgage Refinancing

If you obtained a mortgage to finance your home and your credit scores are high, mortgage refinancing can be the best option. Refinancing may lower your mortgage rate and monthly payments, thus enabling you to concentrate on renovation. Also, you can try out other loan refinancing options available from different lenders. This includes allowing the lender to pay out your current mortgage and refinancing your revamping project.

  1. Personal Loan

Personal loans are an alternative option for using your home’s equity for financing and/or putting your home up as collateral. In fact, you may not have to put up any assets for collateral, but you’ll generally need a good or excellent credit score to qualify for the best rates. Therefore, a personal loan is suitable for those people with good credit score, adequate equity, and shorter repayment periods.

  1. State Home Programs

The government runs several home programs that may significantly enhance the value of your home. However, there are several eligibility criteria that one has to undertake. For instance, you must submit your application prior to the onset of renovation. Also, some renovations such as spas, pools, and other luxury facilities are omitted in these programs. Generally, government home programs focus on funding basic home refurbishment to enhance the value of the property. The common items for these programs include replacing floors, cracks, and a leaking roof.

  1. Low-Interest Loans

In some areas, the local government provides home improvement programs that have low or no interest rates. However, each state may have its eligibility requirements used in selecting potential clients for the program.  For instance, the loan must be specifically for renovation and not for building or purchasing a new home. However, home improvement programs are not available in all regions; hence, it is practical only in counties that have them.