When your home needs a siding upgrade, it’s important to take action—because siding protects your property from damaging moisture, pests, and weather. Of course, investing in new siding can add up, and you may be wondering how to pay for such a vital renovation project.
The good news is, there are many funding options to help you keep your home safe and beautiful. Read on to discover the most common tools for siding financing, how to know if they’re a fit—and how our team can make the financing process easier.
Identify the Right Funding Option for Your New Siding
Remember—finding the right financing choice depends on several factors, including your personal preferences, your credit score, the equity you have in your home, and more.
- Get Financing Directly Through John McCarter Construction
If you’d like to finance your siding replacement or any other home improvement project, John McCarter Construction makes financing convenient. We partner with one of America’s top providers of consumer financing—making it easy to get started on your home renovations. Simply call us at (248) 446-1750 for details and to begin your application.
Consider this option if you want to break down your siding replacement costs over multiple payments. Our team assists you so the process is as streamlined as possible.
- Choose a Home Equity Loan
This type of loan is based on the equity you currently have in your house. It pays you a lump sum that you can use toward your new siding, and you can borrow up to 85% of your property’s value, less anything you owe on your first mortgage. Home equity loans have moderate interest rates—less than personal loans, but higher than HELOCs and refinances.
Consider this option if you don’t want to refinance your main mortgage, and you have enough equity in your home to make a second home loan doable.
- Refinance Your Existing Home Loan
If you have significant equity in your house, think about refinancing. You’ll pay off your first mortgage and get a new mortgage, which can go toward new siding and any other renovations you’d like to invest in. You may qualify for refinancing if the combined cost of paying off your old mortgage and the additional refinanced cash is less than 80% of your home’s value.
Consider this option if you know it will be worthwhile to pay off your existing mortgage, such as getting a lower interest rate or having funds to invest in several upgrades.
- Look into Getting a HELOC
A home equity line of credit is tied to your home’s equity. When you qualify for a HELOC, you have a credit limit you can borrow against—so in a way, it functions similarly to a credit card. You can borrow against that credit limit, pay down the balance, and then borrow again without opening up another loan, making it handy for ongoing renovations.
Consider this option when you are willing to use your home as collateral and you desire flexibility in having a credit limit available to spend against. Know that HELOCs usually have variable interest rates.
- Look into Federal Loan Options
If you are buying a fixer-upper, you may qualify for a federal home renovation option such as an FHA 203(k) loan or a Fannie Mae HomeStyle® Renovation Loan. Such loans are based on the estimated value of your property after the renovations are completed (rather than the as-is value). A different federal option is the FHA Title 1 loan, which is available to help low to moderate-income homeowners with renovations that protect or improve a property’s basic livability.
Consider this option when you have poor credit scores, lack equity in your home, and/or otherwise qualify for federal loans.
- Get a Personal Loan
If other options don’t seem feasible, a personal loan is a quick, effective alternative. The ideal time to choose such a loan is when your credit score is excellent, because you can qualify for lower interest rates. If your credit score is on the lower side, you might look at personal loan choices through a local credit union.
Consider this option when you don’t want to or are unable to use your home to back the loan. Remember, personal loans have higher interest rates because they’re not tied to collateral.
Enjoy Peace-of-Mind Siding Replacement with Our Local Pros
Siding replacement is a significant and worthwhile investment in your home’s long-lasting performance. When it’s time for new siding, remember that you have several ways to finance the process and enjoy a home that keeps its value.
At John McCarter Construction, we’re committed to giving homeowners in the greater Detroit area top-notch service from the moment you call on us to the final walkthrough and beyond. Learn more about our convenient financing options that make it simple to get started on your home upgrades.
