Secured home improvement loans

Home improvement loans provide you with the necessary amount so that you can give your home a new look. These loans are designed so that you can pay for the renovation, maintenance or extension of your house. You can also use the money to improve your kitchen, add a room, improver furnishing, repair the floor and correct the leaking ceilings.
With secured home improvement loan you use the equity in your home. You place your home as collateral for the amount that you want for the repairs and construction. With the money you can conveniently modify the living space to give it a new look.

These loans are available to the self employed, professionals, individuals with bad credit history, CCJs and individuals with history of bankruptcy. These loans come with low interest rates as the home that you place as collateral lowers the risk of the lender. But the interest rates for the individuals with bankruptcy or bad credit history the rates are slightly higher than the standard interest rates.

Characteristics of secured home improvement loans

• You have to place your home as collateral.
• The interest rates on loan are generally fixed but some lenders give you the option of variable interest rate.
• You can borrow $1000 to $2, 50,000 depending upon your needs.
• These loans come with the repayment period of twenty four months to twenty five years. You can choose the repayment term according to your financial situation and repaying capacity.
• With the loan amount you can add the swimming pool, improve the kitchen, and use it to renovate your bedroom or to convert your lobby into a small study room.
• The loan is also available to the individuals with bad credit history but for them the amount comes at slightly higher interest rate.
• The interest on such loans is tax deductible.
• If your loan amount is more than $100,000 then the officials may ask for some documents such as the plan for the renovation that you want to take, an information sheet from the contractor and a letter with all the specifications signed by your contractor.

Eligibility conditions for home improvement loan
The home that you wish to place as collateral should have a high market value. Besides this you should be not less than eighteen years of age. You should also have a regular income and you should be employed so that you can repay the loan amount that you borrow.

Good credit history is also a condition for the loan. Although the loan is also available to the individuals with bad credit score but a good credit increase the chances to qualify for the loan.
Secured loans are long term loans which give you money for big construction or renovation. There are companies which sanction the loan online. You just have to visit the site, get the quotes and apply for the loan.