Best Sunroom Financing For Good & Bad Credit

What is Sunroom financing?

Sunroom financing can provide an affordable solution for homeowners that allows tham to make payments over time. Homeowners can use secured or unsecured loans for sunroom financing. Unsecured loans do not require collateral. Secured loans do require collateral. In most cases, unsecured loans are easier to qualify for and less risky for the homeowner. This can offset their potentially higher interest rate. Whether you use a secured or unsecured loan you’ll most likely receive the funds you need to build your dream sunroom. If you use a personal loan or home equity loan you should get an accurate estimate of what your sunroom will cost prior to applying for the loan. Home equity loans and personal loans provide lump sums of cash. Typically interest starts to accrue as soon as the loan is funded. This means you should borrow the right amount of money to avoid paying additional interest fees. 

How does Sunroom financing work?

All types of sunroom finance work differently when it comes to the details. However, the overall idea is about the same. Homeowners that use sunroom financing borrow the funds they need and make payments over time with interest. Below, we will educate readers on various sunroom financing options and how they work. We highly recommend using a personal loan for sunroom financing, Personal loans offer competitive interest rates and long repayment terms up to 12 years. 

Sunroom Financing Options

On average, a sunroom costs around $30,000. The size, design, materials, and more can impact the cost of your sunroom. Homeowners working on a tight budget may want to consider prefabricated sunroom kits that can range between $5,000 to $30,000. Increasing the amount of living space your home has can increase it’s value and make it more desirable. This means sunrooms can be a wise investment. Even though you may pay more using financing, there’s a good chance you’ll recoup your money. While paying cash is the cheapest way to pay for a sunroom addition, you may not have the cash or you may not want to use the cash. Financing a sunroom allows homeowners to make affordable monthly payments. Secured sunroom loans may have lower interest rates but unsecured sunroom loans may be easier to qualify for. Let’s take a look at different sunroom financing options. . .

Personal Loans 

If you are looking for a low risk sunroom financing option you should consider a personal loan. Personal loans can be used for just about anything. Compared to other sunroom financing options, they can be easier to qualify for and take less time to obtain. Some lenders can provide funds for a personal loan same-day as approval. Most personal loans are unsecured with a fixed interest rate. This means they do not require collateral and the interest rate should not change during the loan term. Most lenders offer personal loans up to $100,000 with rates starting at just 4.99. Banks, credit unions, and online lenders can offer personal loans. Banks and credit unions usually have more strict requirements and longer approval processes. This can make online lenders more attractive. Not to mention, the competitive rates and terms online lenders can offer. Some may be hesitant to use an online lender due to a lack of confidence in the internet. If you are considering a personal loan for sunroom financing you should visit PrimeRates. Whether you have good credit or bad credit, PrimeRates can connect you to a lender that can provide sunroom financing. 

HELOC

In order to qualify for a home equity line of credit (HELOC) you’ll need to have enough equity in your home. While a HELOC can offer low interest rates, they may be more difficult to qualify for than a personal loan. In addition, homeowners have to borrow against their home increasing the risk for the homeowner. Most lenders require homeowners to have at least 20% equity in their home to qualify for a HELOC. A HELOC can be compared to a credit card in the sense that you’ll have a revolving line of credit and will only be charged interest on the amount you use. In most cases, homeowners can borrow about 75% to 90% of the available home equity. For example, if you owe $200,000 on your mortgage and your home is worth $450,000, you could potentially get a HELOC for $187,500 to $225,000. If you need money quickly a HELOC loan may not be the best option. Most lenders have a lengthy approval provess for HELOC loans. Homeowners can obtain HELOC loans with interest rates as low as 2.49%. Since the lender has collateral, there is less risk for the lender. If you default on a HELOC loan you may risk losing your home.

Cash Out Refinance

Homeowners can use a cash out refinance to finance a sunroom. However, cash out refinances may be more complicated than other options. Similar to HELOC’s and home equity loans, cash out refinances also require homeowners to have a certain amount of equity in their home. If you use a cash out refinance you will refinance your mortgage and borrow money at the same time. When you complete your refinance, you will receive a check. The balance of your new mortgage will be higher than your old one. The difference between the old mortgage and new mortgage balance should be the amount of the check you received, plus any closing costs in the loan. Most lenders will require you to retain at least 20% equity in your home after refinancing. If interest rates have dropped since you took out your first mortgage, you may be able to lower your interest rate while borrowing money. One downside to cash out refinances is that you will most likely have to pay closing costs on the entire loan amount. 

Home Equity Loan

Home equity loans are secured loans that provide homeowners with a lump sum of cash that can be repaid over time with interest. Simila to a HELOC, home equity loans require homeowners to have equity in their home. Homeowners that use home equity loans are borrowing against the equity in their home, making this a riskier option than a personal loan. Home equity loans are commonly referred to a second mortgage because they are secured by your property. Most lenders will loan between 80% to 85% of your home’s equity. If you default on a HELOC or home equity loan, you may risk losing your home. 

What are the reasons to apply for Sunroom financing?

Each homeowner has their own situation and motivation to apply for sunroom financing. Some of the most common reasons to apply for sunroom financing include wanting to save cash for an emergency or not having enough cash on hand. PrimeRates has lending partners that can offer low interest rates and flexible terms making sunroom financing very attractive for homeowners. 

What are the requirements to qualify for Sunroom financing?

Requirements can vary depending on the type of sunroom financing you choose. Some of the basic requirements for a personal loan from one of PrimeRates lending partners are. . .

• Credit score of 620 or higher
• Consistent income
• Reasonable debt-to-income ratio

How to Find Best Sunroom Financing Deals

Finding the best deals on sunroom financing is easy at PrimeRates. PrimeRates allows homeowners to view sunroom financing offers from multiple lenders without affecting their credit score. This can save you hours or days worth of time of researching to find the lender with the best sunroom financing offer. Or perhaps you invest time researching and applying with a lender, only to find out that you do not qualify for the offer you saw advertised. PrimeRates can connect you with lenders that can help based on your credit score and borrowing needs. 

How to apply for Sunroom financing

Whether you have decided to use a HELOC or personal loan for sunroom financing, you’ll most likely need to start with an application. If you are pursuing a personal loan for sunroom financing, you should apply through PrimeRates. PrimeRates partners with lenders that specialize in personal loans for sunroom financing. Homeowners can submit one application through PrimeRates without affecting their credit score. Within minutes homeowners can receive multiple sunroom financing offers. Here are 3 easy steps to apply for sunroom financing through PrimeRates. . .

#1. Submit easy online application

#2. Select the best sunroom financing offer

#3. Receive funds quickly

Conclusion

Sunrooms can provide homes with a relaxing and practical living area with unobstructed views of the outdoors. Sunroom financing can provide homeowners the funds they need to create the sunroom of their dreams. If you have equity in your home and are confident you can repay the loan, you may want to consider a HELOC or home equity loan. If you do not have equity in your home or do not want to use your home as collateral you should consider a personal loan.PrimeRates offers a secure online platform that can connect homeowners to reputable lenders. Borrowers can compare personal loan offers without affecting their credit score. Whether you have good credit or bad credit, PrimeRates can help you obtain the best sunroom financing.

Pre-qualify for sunroom financing. . . apply online today!