Financing Your Home Improvement Projects Without a HELOC From Your Bank
HELOCs, or Home Equity Lines of Credit, are a handy tool in a homeowner’s belt. With a HELOC, you can borrow against your accrued equity to access the money necessary for home repairs and other large expenses. It can sometimes be a risky venture to borrow against your home like this, but after weighing the pros and cons, many homeowners opt for HELOCs or similar home equity loans.
Unfortunately, it’s looking like HELOCs and mortgages in general might be significantly harder to get for a while. You may have heard that large banks like Wells Fargo and JPMorgan Chase are putting a temporary stop to HELOCs. And more banks are likely to follow suit.
Banks are nervous right now about HELOCs because in the event of a foreclosure, it's the primary mortgage lender that hops to the front of the line for recovery payments. To a bank, HELOCs are a risky offering right now thanks to the current economic fallout from COVID-19. So it’s not a big surprise that many banks would choose to scale back on HELOCs or even stop taking applications all together.
Home improvement financing options
Many people turn to HELOCs to finance home remodels, but right now, that’s simply not an option for most. So what can you do if you were planning on using a HELOC to cover the rest of your home remodel or repairs?
You’re best bet right now is to finance through a different provider or directly through your renovation company.
If you come to us for your kitchen makeover, we’ve got your financing covered. Those who choose to finance through Kitchen Tune-Up can get rates between $99 and $249/month. We’re also offering especially low rate financing options through June 1: 12 months no interest and no payment that rolls over to only 5.99% if you can't pay it off within a year.
We partner with some of the best financers available to make sure you get doable rates with no down payments. Financing through Kitchen Tune-Up is designed to be straightforward and easy, with no catches or confusing terms. You can check out our financing page for more details. Because getting the kitchen of your dreams should be as pain-free as possible.