How to Finance Home Renovations in Northern Virginia

How to Finance Home Renovations in Northern Virginia

Important home renovations such as a new roof, new siding, new windows, or a bedroom or bathroom addition should not be put off. Yet many homeowners in Northern Virginia are left wondering how to finance home renovations.

Cosmo Builders is a full-service design-build contractor in Northern Virginia, and we make it a point to stay up to date on all of the ways to finance a home renovation. Home remodeling, roofing jobs, and other construction projects can be funded in a variety of ways, and our consultants can help guide you to the right resources based on your circumstances.

In the meantime, here are some of your options.

Low-Interest Loans

There are a number of low interest loan options available to you. There are low-interest loan programs for different types of home renovations in Northern Virginia. Here are a few of the programs that are confirmed to be taking applications.

Virginia Housing Home Improvement Loan

Website: https://www.virginiahousing.com/homebuyers/home-loans

Phone: 1-877-VHDA-123 (1-877-843-2123)

Plus Second Mortgage: A zero down payment second mortgage in which you can borrow up to 1.5% more than the sales price or appraisal of your home. This can be used to finance home renovations in Northern Virginia. Standard Virginia income limits apply.

There are some additional resources on this page, including options for FHA and VA loans.

FHA Title 1 Home Improvement Loan

Website: https://www.hud.gov/program_offices/housing/sfh/title/title-i

Phone: 1-800-CALL-FHA (1-800-225-5342)

Must be “used to finance permanent property improvements that protect or improve the basic livability or utility of the property–including manufactured homes, single-family and multifamily homes, nonresidential structures, and the preservation of historic homes. The loans can also be used for fire safety equipment.”

USDA Rural Development Home Repair Loan & Grant

Website: https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-repair-loans-grants

Phone: 804-287-1500

To qualify for this loan program, you must be unable to obtain affordable credit elsewhere, meet the low-income limits for Fairfax County, and own and occupy the home. The loan can be used to maintain, repair, or modernize a home. Cosmo Builders can help you determine if your home renovation in Northern Virginia qualifies for this program. If you’re also over 62 years old, you qualify for a grant that does not need to be repaid under this same program.

Home Equity Loans

If you don’t qualify for any of the loan programs listed above, you can get a home equity loan. This is essentially a second mortgage in the amount of equity you have built up in the home. According to Bankrate, the average interest rate on a home equity loan is 8.59 percent.

Home equity loans are commonly gotten through your own bank, or through the lender that holds your original mortgage. However, you are not limited to these two options. You can get a home equity loan through any bank or lender, so shop around to get the best interest rate and terms.

Energy Programs

You may be able to cover some of the costs of your home renovation in Northern Virginia through energy programs. For example, any home improvements made that reduce energy dependency can result in 30% of the costs being deducted from your tax obligation in Virginia. This might include energy-efficient windows, energy-efficient kitchen upgrades, roof and siding projects, and more.

Consult with Cosmo Builders for Your Home Renovation Project

Don’t let worries about financing stop you from getting more information on the cost and time frame for your home renovation in Northern Virginia. Cosmo Builders offers free consultations during which we can guide you on how to finance and pay for your home addition or remodel in Northern Virginia. Contact us today for more information or to schedule.