You have all these great ideas for renovating your Los Angeles home, but need the proper funding to pay a top notch Los Angeles contractor. If this is true, there are a couple of options available to you. Sometimes, you have to think outside the box to find resources for your project. Here are a list of places where you can find financing for your Los Angeles remodeling project.
Use Credit Cards
You should consider using your credit cards to pay for your Los Angeles remodeling project only if you are in good standing with them. No one wants to go deeper into debt, so determine this carefully. Also, you shouldn’t use your credit cards for remodeling work that is far into the thousands. In fact, it would be wise to only use your credit limits for home improvements that are below $1,000. Some folks find this to be a hassle-free and cost-effective method, since there aren’t any upfront costs or annoying paperwork to fill out.
Get a Home Equity Loan
Home equity loans can be used for Los Angeles remodeling work as well. This is when you tap into your home’s equity, which is the amount that you’ve already established with your property. This is like getting money for your home’s worth without having to actually sell it. Any interest payments that you make for the loan can be deducted on your tax returns, which is a brighter side to the idea of paying on a high-interest loan. Home equity loans are ideal for one-time projects, while HELOCs can be used for ongoing Los Angeles remodeling projects. So if you are planning on doing more work later on or want to leave room open for any new inspirations you may have in the future, then it would be best to go with a HELOC.
Retirement Funds/ 401(k)
Some people look to their retirement savings as a way to finance their projects. If you are worried about being able to afford LA contractors, and have sufficient funds in your retirement plan, then you should definitely consider using it. One great thing about using your 401(k) is the fact that it’s yours. This means that there won’t be any high interest rates and there’s no long process or credit checks. It’s basically like a guaranteed instant approval for funds. Just keep in mind that if you end up leaving your job, you will still be entitled to paying back the loan you’ve taken out against your retirement plan, or you could end up facing penalties. In most cases, the loan must be repaid within five years, so your Los Angeles remodeling project should be small to mid-sized.
Life, Margin and Title 1 Loans
Money that you may have accumulated on your life insurance policy, stock portfolio or home, can be borrowed and used for your Los Angeles home remodeling. If you decide to borrow from your life insurance, all you will have to pay back is the interest. If you end up passing away before paying it back, your family will receive less money. With margin loans, you’re borrowing against your stock portfolio. The upside to this option is that you may not have to repay it back if the market does well, and if it doesn’t you may end up having to sell the stock. Title 1 loans are funds taken out against your home – it is a federal loan. It is required that you have limited equity on your Los Angeles home. You are only able to use the funds for Los Angeles remodeling work that is necessary, such as for home wheelchair access or other disability and handicapped readjustments.