At Georgetown Mortgage, we understand the value of a comfortable and functional home. Our home improvement loans in Texas are designed to provide secured financing for construction, renovation, or general home repairs. Unlike typical personal loans, these specialized solutions offer flexible terms and competitive rates to suit your needs. Our easy online process lets you get started quickly, so you can focus on turning your house into the home you’ve always dreamed of.
What Is a Home Improvement Loan?
A home improvement loan is a type of financing specifically intended for remodeling, repairing, or upgrading a property. It differs from standard personal loans in that it focuses on home-related projects. Common uses include adding square footage, updating worn-out flooring or countertops, improving energy efficiency, or tackling necessary repairs. At Georgetown Mortgage, we offer fixed interest rates to make your monthly payments predictable.
How Do Home Improvement Loans Work in Texas?
Homeowners in Texas can finance remodeling, repairs, or expansions through a structured loan that sets clear terms for principal, interest, and repayment. At Georgetown Mortgage, we offer loan amounts ranging from $5,000 to $50,000, with repayment periods starting at 12 months and extending up to 15 years. This range gives borrowers flexibility in choosing the right amount and term for their specific project, whether it’s a quick kitchen upgrade or a full-scale addition.
Before you’re approved, factors like credit score, property details, and intended improvements are evaluated. The loan may be secured by the property or by other collateral, depending on the arrangement.
Once the loan is finalized, the funds can be disbursed in a lump sum, making it easier to pay contractors or purchase materials. Monthly installments then begin according to the agreed schedule. This straightforward structure allows you to maintain control of your budget while improving your living space in a way you’ve always wanted.
Home Improvement Loan Rates in Texas
Interest rates on home improvement loans can vary based on factors like credit score, income, and the property’s overall value. At Georgetown Mortgage, we offer an average annual rate of about 6.5% on a 15-year home improvement loan in Texas for good credit borrowers.
With this rate, a $40,000 loan could have a monthly payment of $348.44, leading to a total cost of about $62,719.73 once the loan is fully repaid.
What Can I Use a Home Improvement Loan for?
A home improvement loan from Georgetown Mortgage can be used to cover a range of property updates that boost comfort, reduce energy costs, and enhance value. Here are some common uses:
- Remodeling a kitchen or bathroom
- Adding a new room or expanding existing space
- Upgrading floors or countertops
- Installing energy-efficient systems like solar panels
- Landscaping or enhancing outdoor areas
- Installing a pool
- Repairing or replacing roofs, plumbing, or HVAC systems
Home Improvement Loan vs Home Equity Loan
Although both options can help fund renovations, a home improvement loan is not the same as a home equity loan. Home equity loans rely heavily on the amount of equity you’ve built, while home improvement loans often have more flexible requirements and can be structured as either secured or unsecured.
Additionally, home improvement loans can be granted regardless of Texas Home Equity Cash Out Refinance (A6) status. This means that you can get approved faster.
Get a Home Improvement Loan on Your Terms
A loan for home improvements can unlock potential in your property and provide the funding for your desired upgrades. It also gives you the freedom to choose a repayment schedule that matches your budget and long-term plans. By investing in your living space, you can:
- Increase your property’s resale value
- Enhance comfort and safety for your household
- Reduce utility bills with energy-saving systems
- Customize finishes and layouts that reflect your style
- Address repair issues before they become more costly
Here’s What You Need to Apply
At Georgetown Mortgage, we ask for documentation that proves ownership, outlines the renovation plan, and confirms financial stability. Below are the typical requirements for a home improvement loan:
- Signed and completed application
- Name, business name, address, and telephone number of the contractor
- Itemized bid of work to be performed, with total estimated cost clearly stated
- Copy of the Deed of Trust or Warranty Deed for the property, showing the legal description
- Verification of the amount owed on any first, second, or third mortgages.
- Copy of current hazard (homeowners) insurance policy and Flood insurance policy, if applicable
- Proof of employment or income, such as a recent pay stub or two years of complete IRS tax returns
FAQ
Can I be my own contractor with a home improvement loan?
No, a contractor cannot be an owner of the property. Home improvement loans at Georgetown Mortgage are only available if you have a contract executed with a third-party.
How long is a home improvement loan repaid?
We typically offer repayment periods ranging from 1 to 15 years. Your exact term depends on factors such as the loan amount, credit profile, and your financial goals.
Can I apply for a home improvement loan if I have already started work on my home?
Yes. We consider applications even if work has begun, but we will need documentation of the progress made so far. Additionally, work could be required to cease for up to 30 days. Therefore, you may find a personal loan or a home equity loan a better option in this situation.
How much can I borrow for home improvement?
At Georgetown Mortgage, we offer loan amounts from $5,000 to $50,000. The sum you can qualify for depends on multiple factors, including your income, creditworthiness, and the property’s value.
Can I finance an addition to my home with a home improvement loan?
Absolutely. Our home improvement loans can cover major renovations, including room additions and expansions.