State and Local Loan Programs. In addition to loan programs run by the federal government, there are thousands of programs operated by the 50 states, as well as counties and municipalities. For example, the state of Connecticut currently lists 11 programs that assist homeowners with everything from financing the purchase of a home in need of repair to helping improve the energy efficiency of their houses.
Only you can decide if your home improvement or repair is worth it to you. Some homeowners place a higher personal value on enjoying their living space while they occupy the home; for some, it is important to recover a greater percentage of renovation costs when they sell the home. Remember, a number of factors may determine whether you recover some or all of your expenses.
SoFi is known for student loan refinancing, but the online lender also offers personal loans for house remodeling. You can borrow as little as $5,000 or as much as $100,000 and repay it over two to seven years. SoFi loans also come without origination fees and prepayment penalties. They even have an unemployment protection program that can temporarily pause your payments if you lose your job.

It's been a few years since I painted anything in anger, but back when I did, there was a trick I'd use when protecting carpet. Round the edge of the carpet, right up against the baseboard, I'd run a 1 1/2 or 2 painter's tape, and let the tape stick slightly to the board. Then I'd go round with the broadest taping knife I had, and tuck the tape down hard. That left the carpet edge protected and rounded over and the tape was now creating a line along the baseboard *below* the level of the carpet. Then I'd sheet up as usual.That made it super easy to paint the baseboard, the bottom edge didn't need cutting in! Just work the pain in there! If the bottom edge was a little messy and uneven, who cared? Once the paint was thoroughly dry, the tape was lifted (carefully, to not pull the carpet off the gripper) and the carpet would bounce up and hide the bottom edge of the paint. A perfect look, quicker and safer than trying to cut in along a fuzzy carpet edge.
For a home equity line of credit, the best place to start is your own bank or credit union. Both usually offer lower rates to depositors. Check other sources to be sure. If you get a second mortgage, refinance, or opt for an FHA 203(k) mortgage, you're better off talking with a mortgage broker. A broker has more loan sources to choose from. When looking for a broker, check with people you know, and check any references you get. Contractors are another source of financing, but be wary: It's hard enough to choose a contractor and a loan when they're separate. And be suspicious of contractors who emphasize the monthly payment instead of the total cost of the job.
Energy-efficient mortgages (EEMs). Suppose your home's R-value is the envy of your block. An EEM from Fannie Mae or elsewhere could boost your debt-to-income ratio by up to 2 percent. Utility bills are lower in energy-efficient homes, so the homeowner can afford a bigger loan. EEMs have been used for new construction; lenders are now pushing them for existing homes. An EEM requires a determination that your house meets Fannie Mae's stringent energy-efficiency standards.
If you have planned a renovation with a mock budget and know what the end total looks like, a good first step is to evaluate whether it's feasible to fund with cash. Creating this budget will not only help you pinpoint your expenses, but if you end up going with a loan, it will be an integral step in showing lenders that you’re prepared for the renovations.

I cover the money side of home-related purchases and improvements: avoiding scams, making sense of warranties and insurance, finding the best financing, and getting the most value for your dollar. For CR, I've also written about digital payments, credit and debit, taxes, supermarkets, financial planners, airlines, retirement and estate planning, shopping for electronics and hearing aids—even how to throw a knockout wedding on a shoestring. I am never bored. Find me on Twitter: @TobieStanger


*Credit scores are based on information collected by credit bureaus and information reported each month by your creditors about the balances you owe and the timing of your payments. A credit score is a compilation of all this information converted into a number that helps a lender to determine the likelihood that you will repay the loan on schedule. The credit score is calculated by the credit bureau, not by the lender. Credit scores are calculated by comparing your credit history with millions of other consumers. 
Doing a cash-out refinance means it will take you longer to pay off your home, but it also gives you access to the lowest possible borrowing rates to pay for home improvements. Lenders typically require homeowners to retain some equity after the cash-out refinance, commonly 20%, so you’ll need to have plenty of equity if you want to pursue this option. You’ll also need to be employed, have a good credit score and meet all the usual requirements to get a mortgage. (For more, see When (And When Not) to Refinance Your Mortgage)
One advantage of these loans is that borrowers can get them very quickly—within a few days or even the same day—less time than it typically takes for a bank to approve a home-equity-based loan or line of credit, says Steve Allocca, LendingClub's president. What's more, you're not putting your home at risk when you borrow this way because it's not used as collateral against the loan. 
As with other lenders, your interest rate will be based on your credit score, how much you want to borrow and your repayment period. Because these loans have relatively short repayment periods of three to five years, you’ll get out of debt quickly and won’t be paying interest for years. And you may be able to get a peer-to-peer loan even though you have less-than-stellar credit, though you can expect to pay a high interest rate if you’re approved.
B and C loans. What if you have less than A credit or don't fit the usual employment or income mold? B and C loans are a fallback. While many banks offer them, so do credit unions, brokerage houses, and finance companies. You'll also find lenders that push B and C loans for debt consolidation with enticing introductory rates. Beware, though: Total interest and fees tend to be high because of the lenders' added risk. And since B and C loans lack consistent requirements and terms, comparing them is difficult.
These FHA-insured loans allow you to simultaneously refinance the first mortgage and combine it with the improvement costs into a new mortgage. They also base the loan on the value of a home after improvements, rather than before. Because your house is worth more, your equity and the amount you can borrow are both greater. And you can hire a contractor or do the work yourself. The downside is that loan limits vary by county and tend to be relatively low. The usual term is 30 years.

As with other lenders, your interest rate will be based on your credit score, how much you want to borrow and your repayment period. Because these loans have relatively short repayment periods of three to five years, you’ll get out of debt quickly and won’t be paying interest for years. And you may be able to get a peer-to-peer loan even though you have less-than-stellar credit, though you can expect to pay a high interest rate if you’re approved.
Thinking about building a new pool, putting solar panels on the roof, or remodeling the kitchen or bath? When you have good credit, our national online lending division, LightStream, offers unsecured, fixed-rate loans from $5,000 to $100,000. You'll have the cash in your account to pay the contractor when you're ready—as soon as the same day you apply2. Enhance your home and your home's value.
To qualify for a home remodeling loan, you will need a good credit score and enough monthly income to comfortably pay for all of your debts, including the monthly loan payment. While qualifying for remodeling loans isn’t as difficult as qualifying for a mortgage, “lenders will be very diligent about verifying debt ratios,” McBride said. So, be prepared to supply a lot of paperwork to prove your financial standing.
For a home equity line of credit, the best place to start is your own bank or credit union. Both usually offer lower rates to depositors. Check other sources to be sure. If you get a second mortgage, refinance, or opt for an FHA 203(k) mortgage, you're better off talking with a mortgage broker. A broker has more loan sources to choose from. When looking for a broker, check with people you know, and check any references you get. Contractors are another source of financing, but be wary: It's hard enough to choose a contractor and a loan when they're separate. And be suspicious of contractors who emphasize the monthly payment instead of the total cost of the job.
Disclaimer: Views expressed may not necessarily reflect those of Citizens Bank. The information contained herein is for informational purposes only as a service to the public, and is not legal advice or a substitute for legal counsel, nor does it constitute advertising or a solicitation. You should do your own research and/or contact your own legal or tax advisor for assistance with questions you may have on the information contained herein.
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