Are you considering home improvements? Once you decide to undertake a home remodeling project, you have a few different financing options. You can use cash, take out a loan from the bank, or get contractor financing.
What is Contractor Financing?
Contractor financing can be a great way to finance your home remodel. Contractor financing is when your contractor provides you with financing for your project through a third-party financing company they have partnered up with. It is convenient and helpful.
Please see this list of benefits of using contractor financing by our experts at Affordable One Home Services:
1. One-Stop-Shop: It becomes easy and convenient to finance and remodel when it is all done in one place. You save time and effort to go to different places to get your project executed.
2. Better Interest Rates: Contractor financing usually has lower interest rates than other financing options. Therefore, the remodel loancosts you less in the longrun than the more traditional financing methods. Some contractors even offer promotional interest rates that are even lower, so be sure to check in with your contractor!
3. Increased Purchasing Power: With contractor financing, you can see exactly how much your home renovation will cost and what you can afford. This makes it easier to afford the upgrades that you want.
4. Improved Chances of Approval: If you have good credit, your chances of being approved for a loan from the contractor are significantly increased. Sometimes you can get approved on the spot. Contractor financing saves you the time and hassle of getting your loan applications approved from traditional financing means.
5. Flexible Repayment Terms: Contractor financing offers flexible repayment terms, which means you can choose a plan that fits your budget. You can also make advance or extra payments to pay off the loan faster. A flexible repayment plan can help repair your credit if your credit score is low.
6. No Equity Required: One of the great things about contractor financing is that you don’t need equity in your home. This is beneficial if you have little or no equity in your home.
7. Better Project Timelines: Contractor financing can also help you with better project timelines. The financing happens upfront, so you don’t have to wait for traditional financing to be approved. It also helps to avoid delays in the supply of construction materials.
The biggest bonus is that you get the financing you need to get the home of your dreams! There is no price tag for that!
Contractor financing should be on your list if you’re considering options to finance your home remodel. The loan amount and the terms will depend on your credit score, your project, cost of the project, size of the loan, etc.