What is garage financing?
Garage financing can provide homeowners with a lump sum of cash to renovate or repair an existing garage or build a garage addition. Garage financing can also be used to make improvements such as new garage doors, adding windows, and more. There are lenders dedicated to offering garage financing or some contractors may even offer garage financing. One of the smartest and safest options for homeowners is an unsecured personal loan that can be used for garage financing. Unsecured personal loans do not require collateral or down payment meaning there is little to no risk for the borrower. While there are other garage financing options, most of them require collateral. If you default on an unsecured you risk lowering your credit score. However, if you default on a secured loan you risk losing an asset such as your home. Good and bad credit borrowers can qualify for personal loans. A little later on we'll go over some of the requirements to qualify for a personal loan. PrimeRates can connect you with reliable lenders that offer garage financing up to $100,000 with terms up to 12 years and interest rates starting at 4.99%.
How does garage financing work?
Personal loans used for garage financing are easy to manage and understand. Terms may vary depending on the lender you choose but the overall structure of a personal loan should be similar. When you use a personal loan for garage financing the funds are issued as a lump sum that you repay monthly with interest. If you are using an unsecured and fixed personal loan, the monthly payment and interest rate should not change during the loan term. For example, if you borrow $10,000 at 4.99% with a 5 year term your monthly payment should be about $189. Before applying for garage financing we recommend speaking with a professional and receiving an accurate estimate for what your project will cost. There are a few reasons this is important. The main reason is you will be charged interest on the entire amount of money you borrow. In addition, your monthly payment is determined by the amount you borrow, the interest rate, and the term. Before signing into the loan you should know what kind of monthly payment you can afford. There are a variety of personal loan payment calculators available online that you can use to estimate monthly payments. You may need to extend the term in order to achieve a certain payment. Most lenders do not have an early payoff penalty meaning you can pay the loan off early without extra fees. We recommend choosing a lender that does not have an early payoff penalty and trying to pay the loan off early. Paying as little as 10% extra each month can save you hundreds of dollars on interest.Â
What are the reasons to apply for garage financing?
You may have your own set of reasons urging you to apply for garage financing. If you do, you are making a conscious decision that you have probably spent a lot of time thinking about. Some of the most common reasons for applying for garage financing include not having the cash on hand or wanting to save the cash for a real emergency. If you can qualify for a low interest rate and pay the loan off quickly, it may make more sense to use garage financing versus using all the cash in your savings.Â
Garage Financing Options
As we mentioned earlier, there are a few options for garage financing. . . some being less risky than others. Every individual has a different situation meaning you should compare options and choose the one that is best for you. Garage financing options include. . .
#1. Personal Loan
Personal loans are easy to qualify for and involve little risk for the borrower. We have focused primarily on this option throughout this blog because it’s a top choice for many homeowners. You can secure a personal loan through a bank, credit union, or online lender. Online lenders are usually easier to qualify for and offer competitive rates and high loan amounts. In addition, most online lenders have fast application processes and fast funding. If you use financing offered through a contractor, you will most likely be using a personal loan.Keep reading to learn more about how to qualify and apply for a personal loan.Â
#2. Credit Card
While credit cards can provide you a way to finance purchases when you do not have the cash available, they may not be the most sensible option for garage financing. If you just need to finance some of the materials you may consider using a credit card. However, if you need to finance a garage addition or serious renovations, credit cards may not provide enough funding. In addition, credit cards typically have higher interest rates than other options. If you can afford a high monthly payment you may be able to qualify for a credit card with a promotional 0% period. Most likely, you’ll need substantial income and an excellent credit score to qualify for a high credit card loan amount with a promotional period.
#3. Home Equity Line of Credit (HELOC)
A home equity line of credit can provide a revolving line of credit that can be used for garage financing. In order to qualify for a HELOC loan you’ll need to have enough equity in your home. When you use a HELOC loan you borrow against the available equity in your home while using your house as collateral. Most lenders allow homeowners to borrow up to 85% of the value of your home minus the amount you owe. Home equity loans can provide high loan amounts and low interest but are much more risky for the homeowner.
What are the requirements to qualify for garage financing?
Garage financing may be easier to qualify for than you think. If you have a credit score of 620 or higher, a reasonable debt-to-income ratio, and consistent income you may qualify for garage financing. PrimeRates partners with a variety of lenders that are committed to helping all credit types secure garage financing. If you are concerned that you may not qualify for garage financing you should apply with a co-signer. Ideally, the co-signer should have a good credit score and consistent income. If you do not have a co-signer you may want to look into other types of garage financing such as secured loans, HELOC loans, and more. Secured loans are backed by collateral making them less risky for the lender. This means you may be able to qualify with a lower credit score but you’ll need to be able to provide collateral. If you default on a secured loan you risk losing the collateral and lowering your credit score.
How to Find Best Garage Financing Deals
Most of us invest tons of time ensuring we get the best deals. But could you imagine knowing you got the best deal without doing hours of research and shopping? PrimeRates offers a completely free, safe, and time-saving platform that can help you find the best garage financing deals. PrimeRates can connect you to lenders based on your credit score and borrowing needs. Homeowners can submit one application that does not affect their credit score and discover the best financing deal that they qualify for. PrimeRates allows you to connect with multiple lenders and see what kind of deals they are offering. This makes comparing multiple garage financing offers and lenders easy. Most PrimeRates lending partners determine the interest rate you qualify for based on credit score, loan term, and purpose of the loan. Once you have found the best garage financing offer you can proceed with receiving your funds directly with the lender.Â
How to apply for a garage loan
PrimeRates offers a free user-friendly and secure platform designed to help homeowners secure the best garage financing and loans. Homeowners can be connected to multiple lenders based on credit score, how much you need to borrow, and what you need a loan for. Submitting an application through PrimeRates is painless and does not affect your credit score. Within minutes you can receive multiple personalized loan offers. Most PrimeRates lending partners do not have spending restrictions meaning you can spend the funds on just about anything. Homeowners can take advantage of generous loan amounts to finance garage additions or renovations and other home improvements. Here are 3 easy steps to apply for garage financing loans through PrimeRates. . .
#1. Submit easy online application
#2. Select the best garage financing loan offer
#3. Receive funds quickly
Conclusion
In conclusion, using a personal loan for garage financing may be the best option. PrimeRates can help homeowners secure the best garage financing. In addition, PrimeRates works with contractors that want to offer garage financing options for customers. Whether you are a homeowner or contractor, PrimeRates services are always free for you. If you have been hesitating to apply for garage financing, we strongly encourage you to apply through PrimeRates. Whether you qualify or do not qualify, your credit score will not be affected.Â
Get pre-qualified for garage financing today!
