Home Improvement Loans Tips, Info & FAQs
A fixed-rate loan for home renovations and improvements
When you’re making improvements to your home*, you’re not just making your life better in the short term. You’re also making an investment in your future. Ideally, the increase in the value of your home will exceed the cost of the improvement.
Here are four home remodel projects that can improve the resale value of your home. They’re excellent uses for a home improvement loan and you may be able to save money by doing part or all of them yourself! By the way, consult your tax advisor** to determine if these improvements apply for tax deductions.
Replace the front door
Why not start your home remodeling project with the first thing you interact with on your house: the front door. Upgrading an old, poorly-fitting front door with a newer energy-efficient model is a cheap, quick project that can instantly improve your home’s efficiency and aesthetic appeal. Best of all, hanging a door can be done in an afternoon!
With an average price of just over $1,200, including labor, an energy-efficient front door has an ROI of 98%! It’s also a chance to be creative. A new front door can add a splash of color, and window placements can break up a monotonous front profile.
Minor kitchen remodels
Minor kitchen upgrades, like new cabinets, counter-tops and energy-efficient cook-tops, are relatively inexpensive. The average spend here is just under $20,000 with an estimated return on investment at an impressive 80%. Just like with the front door, the changes are mostly aesthetic. People perceive a more modern-looking kitchen as being a better fit than a more “retro” look.
This is also a chance to customize a place where you spend a remarkable amount of time. Having a kitchen laid out just the way you like it can make it easier and more enjoyable to cook. This will encourage you to eat more meals in, and energy-efficient appliances can lower your electric bills for the life of the home.
The average cost, based upon a 16 foot by 20 foot wooden deck, is $12,000. The average return on investment is just over 80%. This is because of the perception of expanded living space at a reasonable price. Adding a deck costs about $40 per square foot, while a square foot of inside space costs an average of $90! Decks are a great way to increase the play space for a modest cost.
How we help
If you are new to the idea of a home improvement loan and not too sure how it works, we are here to help. But do not be worried — these loans offer competitive rates and a proven history of lower interest rates. Contact United Texas Credit Union to get the best loan option for you.
*Loans must be on single-family detached residential property located in Texas. An estimate or contract for home improvement project must be provided.
**Consult a tax advisor about your specific situation.
From our Blog
What can I use the funds from a Home Improvement Loan for?
Home Improvement loan proceeds can only be used for repairing, rehabilitating, remodeling or improving a dwelling on the real property where the dwelling is located.
What are the eligibility criteria to get a Home Improvement Loan?
1. All applicants applying for a Home Improvement loan must fall within our Field of Membership and must be listed as a property owner.
2. The subject property must be your primary residence, however, in the case of a vacation or second home, you can get the loan on that property as long as it is not used as a rental for the life of the loan.
3. Loans must be on single family detached residential property located in Texas.
Is there a loan application fee?
No, there is no fee to apply for a United Texas Credit Union Home Improvement Loan.
How much can I borrow against my home's value?
100% of your home improvement costs can be financed if the mortgage balance plus the home improvements do not exceed 95% of the market value of your primary residence, or 90% of a second home.
Are there any escrow requirements?
No escrow account is required.
Do I have to get homeowner's insurance?
Homeowner’s insurance is required to cover the loan amount and any prior liens.
How much can I borrow against my home's value?
An appraisal and a current title search are required on most UTXCU Home Improvement loans. Your mortgage specialist will determine what is required and will order these for you.
What are the minimum and maximum loan amounts I can borrow?
The minimum loan amount is $40,000. The maximum loan amount is $275,000 depending on your qualifications.
Does United Texas CU require points to be paid on the loan?
We do not charge points on our Home Improvement loans; however, you have the opportunity to pay points to reduce the rate. For instance, 1 point = 0.25% rate reduction. The maximum discount available is 2 points.
Is there a fee if I pay my loan off sooner or make extra payments in advance of the due date?
No, there are no penalties charged for making extra payments on your Home Improvement loan or paying it off early.
May I purchase supplies ahead of time?
You may not purchase supplies or begin work prior to the funding of the loan.
Is Private Mortgage Insurance required on a Home Improvement Loan?
No. We do not charge PMI on Home Improvement loans.
Can I get an FHA or VA Home Improvement Loan?
No. We currently only offer Conventional Home Improvement loans.
Will application only be taken online?
Yes. Applications will be taken online only. The applications go directly to our mortgage partner, Certified Funding. If your application is incomplete, Certified Funding staff will call you and assist you with your application. Disclosures, documents, and closing coordination will be handled by Certified Funding.
What if I want to do the repairs myself?
A licensed contractor is required on UTXCU Home Improvement loans.
If I am a licensed contractor, can I do the work myself?
Yes. If you are a licensed contractor, you can perform the work as you would any other project as long as you act independent of the project.
Next StepGo to Next Step
Home Improvement Loans Rates & Calculator
Information and interactive calculators are made available to you as self-help tools for your independent use. We cannot and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. Payments do not include amounts for taxes and insurance premiums, if applicable. The actual payment obligation will be greater.
Home Improvement Loan (Texas only)
|$40,000 - $150,000||4.75% APR*||up to 15 years|
|$40,000 - $150,000||4.99% APR*||up to 20 years|
* APR= Annual Percentage Rate effective as of June 28, 2021. APR reflects the interest rate, as well as mortgage fees and other charges you may have to pay to get the loan. Financing available for properties in Texas. Membership eligibility required. Loan subject to credit approval. Minimum loan amount may apply. Rate based on the loan amount and CLTV (combined loan-to-value) ratio. Rate may differ. Rates and terms are subject to change at any time without notice; other restrictions may apply. Maximum CLTV on primary residences in Texas up to 80%. Borrower may be responsible for additional costs such as origination fee, appraisal fee, credit report, title search, courtesy closing fee, and recording fee. Property insurance is required, including flood insurance where required.
Next StepGo To Next Step
Home Improvement Loans Why United Texas
- Borrow at a fixed rate to increase the value of your home
- Competitive interest rates
- Terms up to 20 years
- Convenient online application process
- No prepayment penalties
We don't have reviews for this, yet.
Share your story about Home Improvement Loans at United Texas?
Next StepGo To Next Step
Home Improvement Loans How it Works
How it Works
To get your home improvement loan, you’ll need to become a United Texas member. All that requires is a savings account with a minimum $5 opening deposit.
Click the red “Apply Now” button to go directly to our Home Improvement Loan partner, Certified Funding, where you can conveniently apply online for your Home Improvement Loan.
If your application is incomplete, Certified Funding staff will call you and assist you with your application. Disclosures, documents, and closing coordination will be handled by Certified Funding.
Once the loan is approved and funded, you can then get work started on your project.