Posts tagged financing

The Rise of Multi-generational Housing

As the economy continues to be slow to recover, many people will find themselves living in situations they are not used to in order to save money.  One instance of this is multi-generational housing, or more than 2 generations of one family living under the same roof.  Although it doesn’t always necessarily need to be more generations; it could be brothers, sisters, aunts, uncles, or cousins living together.

There are many reasons for consolidating your family under one roof.  For parents, you could be returning to school, saving money for a house, or just need to get out of debt.  Maybe you just want to live in a nicer, safer neighborhood and partnering up with a set of grandparents or brother/sister is your ticket out.  There could have been an extenuating circumstance like a bankruptcy, loss of job, divorce, debilitating injury, disease, or death in the family.

So you are all living together, now what?  Getting along is crucial, especially since this is your home.  In order to make the best out of your situation, it’s time to define the living space.  Make sure boundaries are clearly defined.  Discuss the circumstances as a group; get everyone on the same page.  Be clear about finances: Who will be paying for what and when?  The clearer you are up front, the better things will be in the long run and you will be better equipped to handle situations as they arise.  Good luck and happy saving!

If you need to add more space to your home, the professionals at Tip Top Remodeling specialize in room additions.

Financing a Home Renovation

Before searching for home financing options, it’s important that you set a budget.  Once the expenses start adding up it can be hard to stop if you didn’t tell yourself before what your ceiling will be.  With the average kitchen renovation costing upwards of 50-60,000, it is likely that you will need financial assistance in the form of a loan.  Here are a few of your options:

Home Equity Line of Credit (HELOC)
- Low-interest, variable rate
- Uses your home as collateral by borrowing a percentage of your home equity
- Hard to get, but the best choice if you have home equity
o Home values have plummeted in recent years.  Only people who put a substantial down payment or have owned their home for a long time qualify.
- Process can take a while, and usually requires you to pay for a home inspection
- Often the best rate available

financingContractor Loan
- Borrow directly from your contractor
- Check to make sure rates are competitive, sometimes contractors get kickbacks from lending agency
- Convenient

Government Solar Incentive Programs
- Tax credits if you use eco-friendly materials/products
- Up to $1,500 credit for using Energy Star appliances, and even bigger credits for solar energy systems
- State programs offer additional benefits

Personal Loan
- Compared to credit cards, personal loans have a lower, fixed interest rate
- Check online for offers, just be careful and make sure the business is legitimate

Title 1 Home Improvement Loans
- Government provides private lenders with insurance to provide loans for up to 25k for home improvements for terms up to 20 years
- These loans can be used for anything except luxury improvements like hot tubs
- Interest rates are generally between 10-14%, which is often half of what private lenders charge