When homeowners plan renovations, financing is often the first question. Traditional financing methods often fall short of expectations.
Credit cards may be quick and easy but have high interest rates, making large projects expensive over time.
Personal loans offer fixed terms but typically carry higher rates than other options, making them less appealing for major expenses.
Refinancing used to be a go-to solution, but with today’s rising mortgage rates, it’s not always practical. For those who locked in historically low rates in 2021, refinancing now means giving up a valuable financial advantage.
This is where Home Equity Lines of Credit (HELOCs) stand out.
Read on to learn more about how HELOC financing for homeowners keeps renovation projects moving and leads to significant long-term benefits.
HELOCs are the new go-to option for renovations
Home improvement projects rely on timely access to funds. Financing delays that disrupt project schedules can lead to higher costs and missed opportunities. A Home Equity Line of Credit lets homeowners borrow against the equity they’ve built in their property, providing a flexible and affordable way to fund renovations. And the numbers back it up:
The average homeowner has $311,000 in home equity thanks to rising home prices.
According to CoreLogic, total U.S. home equity has grown to $33.8 trillion as of May 2024, a 73% increase from $19.5 trillion in 2019.
HELOCs offer lower interest rates than personal loans or credit cards, making them a smart and cost-effective choice.4navigates to numbered disclaimer
According to Figure, home improvements is the top use of HELOC borrowers, showing its popularity as a renovation solution.
Homeowners across the U.S. are increasingly turning to HELOCs as a trusted financing option. But not all HELOCs are created equal.
Online HELOCs are a better fit for today’s homeowners
You may already be familiar with home equity loans or home equity lines of credit (HELOCs) as ways to tap your equity for your next home improvement adventure.
Digital HELOCs have transformed traditional borrowing, replacing lengthy approval processes, in-person meetings, and piles of paperwork with a streamlined, digital experience. With just a few clicks, homeowners can apply, get approved, and access funds all without leaving their homes.
Figure’s online HELOC stands out as the ideal solution for today’s homeowners. The application takes as little as five minutes, and funds can be available in as few as five business days2navigates to numbered disclaimer.
The Benefits of a Digital Process
A quick online application that takes minutes
Instant access to property data, lien positions, and valuations
Easy document submission and verification, including an online notary (available in most locations)
Real-time application tracking with notifications for approvals and funding
This efficient process lets homeowners focus on planning their renovations – sooner, faster, and potentially larger in scope – instead of navigating slow moving, complex financing.
Competitive Rates for Greater Savings
Online HELOC platforms, like Figure, leverage technology to streamline operations and significantly reduce overhead costs compared to traditional lenders. These savings can be passed on to homeowners with more competitive interest rates.
Speed That Keeps Projects Moving
Fast access to funds helps homeowners cover planned and unexpected expenses. Contractors can stick to their schedules, ensuring smooth project timelines and avoiding costly delays.
Better Experiences, Happier Homeowners
The convenience and speed of Figure’s HELOC improve the overall experience, allowing homeowners to enjoy the excitement of transforming their spaces without the stress of traditional financing.
Easing financial stress: Helping homeowners navigate
Contractor financing can be intimidating and overwhelming for homeowners focused on renovation projects. Concerns about taking on debt or understanding financing options can create additional stress.
It pays to shop around when you need to borrow money for your home improvement project, whether you use a HELOC or a personal loan. If you use the funds from a Home Equity Line of Credit to make certain home improvements, your interest payments could be tax-deductible under certain circumstances.5navigates to numbered disclaimer That’s unfortunately not the case if you use a credit card or personal loan to finance home improvements.
Unlock the potential of HELOCs for homeowners
Home Equity Lines of Credit are revolutionizing the way homeowners fund renovations, offering flexibility, affordability, and speed. HELOCs make it easy for homeowners to skip the stress of traditional financing and focus on bringing their vision to life.
