A joint FHA loan enables two people to apply together for a home loan when their incomes may not be enough to qualify individually. This type of loan allows borrowers to pool funds to meet the necessary financial requirements. A joint FHA loan benefits married couples, domestic partners, friends, or even co-owning family members.

How Joint FHA Loans Work

Joint FHA loans are insured by the Federal Housing Administration (FHA), which provides an income guarantee for a lender. This insurance allows lenders to offer more favorable terms, such as lowering down payments and accommodating credit requirements. Often, FHA loans require at least a 3.5 percent down payment and are credited to people with credit scores of at least 580.

A VA HELOC is available for veterans who need loans to fund large purchases, such as home renovations, with other loan options available. It is a line of credit based on home equity. Though these specific loans are not guaranteed by the VA, there are other options for loans available through the US Department of Veteran Affairs. 

The VA offers programs and assistance for both veterans and active-duty service members, including those who are seeking home loans. The VA guarantees the loan, which is provided by a lender, making it easier for veterans to qualify. It is important to note that they only guarantee a portion of the loan; however, this is enough to make a difference for the applicant and increase the chances of the lender approving the loan application. 

Hammering Out the Details: A Guide to Financing Property Makeovers

In this guide, we’ll cover the various types of home improvement loans, the significance of credit scores, the role of home equity, loan terms and repayment options, and the factors to consider when choosing the right loan for your specific project. Whether you’re new to home improvement financing or seeking to enhance your understanding of these loans, our guide will provide valuable insights to help you feel confident in starting your renovation project.

In this article, we help you understand the types of home improvement loans without equity, how they work, what to expect in terms of qualifying, and more. By the end of it, you’ll be well-equipped with the knowledge you need to decide is a home improvement loans without equity is right for you. 

Types of Home Improvement Loans Without Equity

Homeowners with little to no equity in their home have a couple of options for financing home renovations. Each will have their own unique terms and qualifying criteria, which will play a role in making the best decision for you.

A comprehensive guide to budgeting, financing, and maximizing the value of your house addition renovation project.

There are so many benefits to adding on to your existing square footage. But we’ll be honest, of all the home improvement projects out there, nothing is more complicated or expensive than building an addition. And that’s why choosing the right financing option is a super important decision.

This guide will help you understand the differences between cash-out refinancing, HELOCs, and home equity loans. We’ll also assist you in determining which option is best suited to your needs.

When you need to finance a home renovation, you have several options. Home improvements can be expensive, and more often than not, homeowners don’t have the personal savings to cover them all in one shot — or would rather not use them . So they look to different loan options to cover the costs. 

Renovating Your Home: Choosing Between HELOC and Cash-Out Refinance

You’ve worked hard and saved up to buy a home. You’ve been paying your mortgage on time each month and are now thinking about doing some home improvements. But your current monthly payments don’t leave a lot of extra cash for something like that. Well, good news!

There are some financing options available that allow you to leverage your home itself and tap into your home equity to get the funding you need. Two of those options are a HELOC and cash out refinance.

A home offers value to homeowners in so many ways. One of the best ways to make that value work for you is actually through your home’s equity. But in a highly unpredictable interest rate market like right now, it may be a lot tougher to utilize your equity’s full potential. And that’s where a fixed-rate HELOC (Home Equity Line of Credit) really shines.

You might have heard of HELOCs before, but you might not have been sure if you can get a HELOC with a fixed rate. The answer is yes. While it can sometimes be difficult to find, many lenders such as RenoFi offer fixed-rate HELOCs that can be utilized for home renovation projects.

A HELOC (home equity line of credit) is one of the most popular loans tied to a home’s equity, and they’re one of smartest ways to pay for home improvements. And that’s because HELOC terms are more flexible than many of its alternatives.  

So how does a home equity line of credit work?

A HELOC offers financing as a revolving line of credit, similar to a credit card. A HELOC loan has two phases: a draw period and a repayment period. While other renovation loans, such as a home equity loan, offers financing via a lump sum initially, a HELOC allows you to access funds on an as-needed basis during a draw period, paying interest only until the repayment period begins.