BIRMINGHAM, AL (WBRC) - Need to make improvements around your house but don't have the money to do it? Experts say more people are now turning to home improvement loans.
Experts at nerdwallet.com say there are several options like a home equity line of credit, which allows you take out money as you need it. There is also a home equity loan, which allows you take out money in one lump sum. Both of these options typically have low-interest rates.
You could also do an FHA 203K loan. That allows you to borrow extra money when buying your home and use the cash for repairs on your fixer upper.
"So you can borrow up to 96.5 percent of the home's value, just a 3.5 percent down payment. You buy that house, and you get some extra money to fix it up," said Holden Lewis, Nerd Wallet Home Analyst.