If your house is getting a bit out of date and the results of the home inspection (find an example here) you had done indicate that there's quite a bit of work to be done, you might find yourself coming up a bit short on the money that's needed for your renovations. Not to worry. There are plenty of financing options out there for home owners in need of a little help in order to increase the resale value of their property. One of the options available is a home loan. There's no single definition of a home loan, so we'll outline a few popular options
Credit card companies are certainly the most eager to have your business. Many even send you letters offering to let you have thousands of dollars without even a credit check. Many people take advantage of these to renovate their home but doing so is not the smartest move. Credit card companies have sky high interest rates - in the vicinity of 18% - so this is the most expensive loan option and the one that will take you longest to pay. Unless you have a terrible credit rating, you can do better.
You took out a mortgage when you originally bought your condo but did you know that by returning to your lender and refinancing your mortgage you can save enough money on monthly payments to do a renovation? Extending the repayment period will do this for you. Also, in many cases it's possible to take out a second mortgage on the same home which will provide you with a lump sum to use on renovations. As with any mortgage, shop around for the best terms.
Lines of Credit
These types of loan, which are usually offered through your bank, offer you the chance to withdraw money as you need it, much like a credit card, and to pay back the balance at a later date plus a certain amount of interest. Keep in mind though that many banks need some sort of guarantee that you will pay, so they will often ask you to have someone co-sign with you or to put your real estate assets as a surety. As with a mortgage, failure to pay this type of loan back can result in repossession of your home. You may need to find a lawyer to help you with some law advice.
Government Loans and Grants
If you're renovating your home to make it more energy efficient, there are government grants and loans available in many places to assist you with terms much more favorable than you'll find at a bank. Investigate your local and federal government webpages before funding the renovation of your property privately. In some cases, tax credits after the fact can also help offset the cost of the renovations.