Mortgage Underwater? No Equity Home Repair Loan Options

The housing bubble has burst and because of the downturn in home values across the nation there are a lot of people who are now living in homes that have not built up any added value over the past several years. This has put a strain on people who were hoping to use the increased monetary value of their homes to perform some much needed home improvements.

In a growing housing market you can buy a house value one year and in the next year the value of the home will actually grow by a few percentage points from one year to the next. You would then be able to borrow money against that added value from a bank and use that money for a big home repair project. So if you bought a home for $175,000 a few years ago it might actually be worth $200,000 today with normal economic growth.

Unfortunately many people don’t have that extra home value which is known as “equity.” Most housing prices have actually dropped in the past year or so, which means a lot of people are now living in houses that are now worth less than what they originally paid. When you owe more money on a house than what it is worth then you are said to be “underwater” with your mortgage.

Fortunately you can still afford home improvements even without having equity in your home. If you’re looking for a big home improvement loan then you may want to think about applying for an FHA home improvement loan from an eligible loan partner. You do not have to have equity in your home to get a Title I home improvement loan. Almost any homeowner can apply for an FHA loan and eligibility is less restrictive than most traditional lending institution loans.

Another great way to keep the costs of a home upgrade project down is to do at least some of the work yourself. There are lots of affordable amateur home improvement things most people can do around their homes with just a little bit of know-how and a willingness to work. For many home improvement jobs the largest expense often comes from the amount of manual labor involved, so by doing some of that work yourself, you can really reduce the total cost of the overall project.

If you have a important home repair that needs to be done, don’t let your home’s dropping value prevent you from getting the cash you need to make the repairs. Most manageable home repairs can become large headaches if they are allowed to go unfixed for too long. And, as you can guess, large home projects always end up costing more than the little ones.

Want to learn about more ways you can apply for specialized bad credit home improvement loans? There are lots of different home improvement loan options available to veterans depending upon your credit score and home value. Also published at Mortgage Underwater? No Equity Home Repair Loan Options.