If you are planning a home improvement project, it is important to understand your financing options. Choosing the right path could help you save money, avoid paying unnecessary interest or even allow you to finish your project sooner than expected.
The smartest way to finance a home renovation is with an unsecured personal loan, which offers flexible repayment terms and typically does not require a credit check. However, it is important to consider whether a personal loan can fit into your budget and whether the cost of the renovation can be justified by its added value to your home.
Government programs for home repair or improvements are often need-based and can offer low or no-interest loans to eligible households. Examples of eligible work items include window and door replacement, new stoop or porch, shingle and siding repair and painting, and other improvements that improve the safety and condition of your home and extend its useful life.
Another example is the Housing Improvement Program, which provides loans to income-eligible households for the repair and rehabilitation of one or two-family dwellings. Eligible work items are those that correct basic structural defects or repair building systems that threaten, or if not corrected would threaten, the health and safety of the household’s residents.
There are also special programs available for Native American, veteran and rural homeowners to help with repairs or renovations that make their homes safer and more livable. The State of New York also has a variety of programs that assist homeowners with the costs of flood and storm damage repair, and climate-ready upgrades.