More than 25% of Surveyed Homeowners Plan to Finance Home Improvement Projects by Borrowing from Contractor
While about 42% expect to pay for home renovations in cash, nearly 43% will turn to credit cards or loans to fund work
FOSTER CITY, Calif. — Modernize.com recently surveyed more than 3,100 homeowners about how they plan to pay for their upcoming roofing, siding, window, HVAC, and solar projects. Survey responses include the following highlights:
Expected Financing for Home Renovations
While most respondents plan to pay for home improvements in cash, loans, and credit cards will be used by nearly as many people.
- Cash/Check: 41.66%
- Financing/Loan: 29.63%
- Other: 15.37%
- Credit Card: 13.34%
Loan Option Preferences
For respondents who indicated they would pursue financing/getting a loan, over 25% hope to obtain financing through their contractor.
- A loan through my contractor: 25.33%
- Personal loan: 13.09%
- Home Equity Loan: 7.39%
- Home equity line of credit (HELOC): 6.30%
- FHA or VA Loan: 4.24%
Finance Research Timing
Those planning to finance were asked about when they will begin researching their financing options.
- After meeting with contractors/after learning more about project cost: 33.48%
- After choosing a contractor for my project: 18.55%
- Before meeting with contractors/I already started researching: 13.27%
“It’s paramount to compare three to four contractor quotes ahead of your project, to find the best contractor, price, and financing options,” said Gregg Hicks, vice president of Modernize.com. “Modernize resources help homeowners research contractors for complex, high-value home renovations, and include guidance on home improvement financing to facilitate projects.”
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