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Making Home Improvements Easier in Florida

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Apr 19, 2023

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For many homeowners in Florida, a home improvement loan is an excellent way to upgrade, enhance the value of their homes and improve curb appeal. Discover more and see what offers are available for home improvement loans in Florida with Hitch!

What do you need to know about home improvement loans in Florida?

Home improvement loans are an ideal way to finance repairs, renovations, and other updates for your Florida house. Different types of home improvement loans may have minor details that vary from state to state, but the basic principle remains the same – a predetermined sum of money is lent upfront so that you can purchase materials and hire contractors for your project. From there, you’ll repay the loan amount plus a predetermined interest rate over a set period of time.

Secured home improvement loan options such as home equity loans or lines of credit let you borrow up to 90% (provided you meet certain credit score and minimum equity requirements) of your total appraised value of your house. Alternatively, unsecured personal loans might be suitable if no collateral is needed - however, it is important to keep up with payments or else you could face serious consequences that follow you for years to come.

Before taking out any loan, always ensure that you’re borrowing within your means so as to avoid any future financial difficulties.

What are the advantages of taking out a home improvement loan in Florida?

Acquiring a home improvement loan in Florida provides numerous benefits, the primary one being the ability to finance home renovations or improvements upfront without depleting savings. By paying back the loan amount plus interest through simple and affordable monthly payments, homeowners can maintain their financial stability while enhancing their living space.

One of the significant advantages of opting for a home equity loan or personal loan for home improvement is the competitive and often lower interest rates than credit cards. Although it may be tempting to use credit cards to cover the expenses, a home improvement loan is a more cost-effective option to save money on interest payments.

With a home improvement loan, homeowners can also enjoy easy and fixed monthly payments that are predictable and straightforward. The loan's APR, monthly payment amount, and repayment period remain constant throughout the loan term, except for variable APR home equity loans.

Moreover, obtaining a home improvement loan is relatively fast and straightforward, particularly for personal loans. As long as the applicant has the necessary credit and income requirements, personal home improvement loans can be approved and funded in as little as one day, depending on the lender.

In summary, a home improvement loan is an excellent financing option for homeowners in Florida who want to upgrade their homes while keeping their savings intact. The loan provides numerous benefits, including competitive interest rates, predictable monthly payments, and fast approval times.

Drawbacks of Using Home Improvement Loans in Florida

It is essential to consider both the benefits and drawbacks before committing to borrowing money, especially with home improvement loans in Florida. While there are several advantages to obtaining such loans, there are also a few downsides to keep in mind.

One major downside is the potential to pay more interest than if paying in cash, even if the interest rate is lower than credit cards. Additionally, if the loan is spread out over an extended period, the interest can accumulate and become quite costly. While obtaining quick access to the required funds is a significant advantage, the cost of the interest must also be considered.

Furthermore, if a secured loan such as a home equity loan or line of credit is obtained and payments cannot be made, there is a risk of losing the asset or damaging credit. In such cases, the bank or lender may sell the home to settle the remaining loan amount. Alternatively, defaulting on a personal loan can lead to negative credit events that can remain on a credit report for up to 7 years.

Despite these downsides, many homeowners in Florida still find home improvement loans to be an ideal financing option for their renovation or repair needs. With careful consideration and planning, it can be an effective way to finance home improvement projects while maintaining financial stability.

What are the requirements for qualifying for a home improvement loan in Florida?

Different lenders will have different qualification requirements depending on the loan type. For a home equity loan or HELOC, you should have a minimum of 15% to 20% equity built up in your home, and a debt-to-income ratio below 43% that includes the new debt. Additionally, you should have a minimum credit score of 620 to even be considered for a home-secured loan option, however, some lenders may even want to see an even higher minimum credit score somewhere between 660 and 700.

When it comes to personal loans, most lenders will want to see a minimum credit score of 620 or higher and a debt-to-income ratio below 43% including the new loan. Keep in mind, minimum loan requirements vary from lender to lender.

What expenses can be covered using a home improvement loan in Florida?

Home improvement loans in Florida can be used to cover a variety of expenses related to renovating or upgrading a home. Some common expenses that can be covered using a home improvement loan in Florida include:

  • Remodeling or renovating the kitchen or bathroom
  • Adding a room or expanding the living space
  • Repairing or replacing the roof, siding, or windows
  • Installing new flooring or carpets
  • Upgrading the heating, ventilation, and air conditioning (HVAC) system
  • Installing new plumbing or electrical systems
  • Upgrading the home's insulation or energy efficiency
  • Adding a new deck, patio, or outdoor living area
  • Installing a new swimming pool or hot tub
  • Making the home more accessible for people with disabilities.

It's important to note that the specific expenses that can be covered by a home improvement loan may vary depending on the lender and the terms of the loan. Additionally, some lenders may have restrictions on the types of renovations or improvements that can be funded through a home improvement loan. It's always a good idea to check with the lender and carefully review the loan terms and conditions before applying.

What is the recommended amount to borrow with a home improvement loan in Florida?

The recommended amount to borrow with a home improvement loan in Florida depends on several factors, including the scope and cost of the renovation or upgrade project, as well as the borrower's ability to repay the loan. As a general rule of thumb, it's typically recommended that borrowers only borrow what they need to complete the project, and avoid borrowing more than they can afford to repay comfortably.

It's important to carefully consider the costs associated with the renovation or upgrade project, including materials, labor, permits, and any other expenses. Borrowers should also factor in any additional costs associated with the loan, such as interest rates, fees, and repayment terms.

Ultimately, the amount to borrow with a home improvement loan in Florida will vary depending on the specific circumstances of the borrower and the project. It's recommended to consult with a lender to discuss the loan options and determine the most suitable amount to borrow for the particular project.

If you're planning a home improvement project in Florida, Hitch is a great platform to consider. With Hitch, you can easily connect with local professionals who can help you with your renovation or upgrade project, from initial design to final installation. The platform also provides tools and resources to help you plan and budget for your project, as well as access to financing options to make it easier to fund your project. Whether you're looking to remodel your kitchen, add a new room, or upgrade your home's energy efficiency, Hitch can help you find the right professionals and resources to make your project a success. So why wait? Sign up for Hitch today and start planning your dream home improvement project in Florida!

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1. Qualified applicants may borrow up to 95% of their home’s value. This does not apply to investment properties.2. HELOCs have a 10-year draw period. During the draw period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) the total of all accrued finance charges and other charges for the monthly billing cycle. During the draw period, the monthly minimum payments may not reduce the outstanding principal balance. During the repayment period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) 1/240th of the outstanding balance at the end of the draw period, plus all accrued finance charges and other fees, charges, and costs.The lender will calculate this amount by taking the outstanding Account Balance on the last day of the draw period and dividing it by 240 months and then adding any finance charge that accrues but remains unpaid during the monthly billing cycle plus any other fees, charges and costs to the fixed principal payment that is due. During the repayment period, the monthly minimum payments may not, to the extent permitted by law, fully repay the principal balance outstanding on the HELOC. At the end of the repayment period, the borrower must pay any remaining outstanding balance in one full payment.3. The time it takes to get cash is measured from the time the Lending Partner receives all documents requested from the applicant and assumes the applicant’s stated income, property and title information provided in the loan application matches the requested documents and any supporting information. Most borrowers get their cash on average in 21 days. The time period calculation to get cash is based on the first 4 months of 2024 loan funding's, assumes the funds are wired, excludes weekends, and excludes the government-mandated disclosure waiting period. The amount of time it takes to get cash will vary depending on the applicant’s respective financial circumstances and the Lending Partner’s current volume of applications. Closing costs can vary from 3.0 - 5.0%. An appraisal may be required to be completed on the property in some instances.4. Not all borrowers will meet the requirements necessary to qualify. Rates and terms are subject to change based on market conditions and borrower eligibility. This offer is subject to verification of borrower qualifications, property evaluations, income verification and credit approval. This is not a commitment to lend.5. The content provided is presented for information purposes only. This is not a The content provided is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply.