And if you want to skip the contractor? There’s a financing option for that, too. Let’s talk EasyPath™ Renovation.

What is EasyPath™ Renovation?

EasyPath is a program that allows you to roll your mortgage and renovation costs together, without having to hire a contractor or make big purchases on your credit card. Designed for home updates completed through major retailers like The Home Depot, Lowe’s, and Menards, EasyPath can be used with conventional renovation mortgages like CHOICERenovation^® and CHOICEReno eXPress^®.

6 perks of taking the EasyPath:

• Loan amount can be based on the projected value of your home after renovations
• Leverage the same interest rate as your home loan instead of your credit card
• Down payments as low as 3% to 5% for purchase transactions
• Purchase and refinance transactions are eligible
• Cardinal makes 100% payment to the retail store to purchase and install the project
• Fixed and adjustable rates available

When is EasyPath the right choice?

Whether or not EasyPath is right for you comes down to your timeline and the scale of your projects. If you’re looking for a faster financing process, EasyPath typically takes less time than working with a contractor. While you save time by eliminating the contractor search and independent quoting process, it also means that larger projects aren’t ideal for EasyPath. The bigger and more complicated the renovation project, the more likely you are to need a specialized contractor to handle it.

The EasyPath process, explained.

With traditional home renovation loans, you have to find a contractor and have your lender verify that they’re qualified for your planned renovations before you do anything else. With EasyPath, you get to skip that part. Here’s how it works:

Step 1: You visit an eligible big box chain store and complete a bid.

Step 2: Next, Cardinal’s Renovation Support Team reviews the bid, consults with the store, and orders an appraisal.

Step 3: Finally, the appraisal is completed based on the projected value of your home after the renovations are finished.

Bonus home renovation loan tips.

If you hadn’t noticed by now, you’ve got a lot of options when it comes to home improvement financing. Whether EasyPath is the right one for you or not, here are some tips to keep in mind before you apply for a home renovation loan.

• Budget for the unexpected
• Get multiple bids to find the best price
• Don’t try to do it all yourself
• Tackle one project at a time

When you’re ready to start your home renovations, we’re here to help finance them.

Want the perks of a home renovation loan without the process of hiring a contractor? EasyPath™ Renovation might be your solution.

The post Home Renovation Loans: 6 Reasons to Take the EasyPath™ appeared first on Cardinal Financial.

5 types of refinances for home improvement

• Cash-out refinance
• FHA 203(k)
• CHOICERenovation^® and CHOICEReno eXPress^®
• HomeStyle^® Renovation
• EasyPath™ Renovation

After we break down these top five types of refinances for home improvements, we’ll go over how to determine the best fit for your goals.

Cash-out refinance

A cash-out refinance* is not officially a renovation refinance. You can use the cash-out funds from your home equity however you see fit. But, many homeowners choose this type of refinance with the intention of using the cash out of their home equity to finance home improvements.

*Using your home equity to pay off debts or make other purchases does not eliminate the debt or the cost of the purchases, but rather increases the loan amount of your mortgage to be paid according to your new mortgage terms.

FHA 203(k)

From complete structural changes to minor home renovations, FHA 203(k) programs allow you to finance home rehab costs and your mortgage in one convenient loan. Backed by the Federal Housing Administration, FHA 203(k) loans offer Standard and Limited options. The right one for you depends on the scope of your planned home improvements.

FHA 203(k) Standard

• Structural changes allowed 
• $5K minimum, no maximum repair amount
• Landscaping and hardscaping allowed 
• 180-day maximum completion time
• Manufactured homes allowed 
• HUD consultant required

FHA 203(k) Limited

• Minor remodeling allowed
• No minimum, maximum $35K repair amount
• Landscaping and hardscaping not allowed
• 180-day maximum completion time
• Manufactured homes allowed
• HUD consultant not required 

CHOICERenovation^® and CHOICEReno eXPress^®

Freddie Mac’s CHOICERenovation is a mortgage that allows you to include your renovation costs in your home loan balance. CHOICEReno eXPress is essentially the same program, but for smaller-scale upgrades. What makes these two refinance options different from FHA (203)k Standard and Limited loans is that they’re not backed by any government entity. They are Conventional loans. That means different lenders may have different qualifying criteria.

HomeStyle^® Renovation

Fannie Mae’s HomeStyle Renovation is another Conventional refinance option to fund your home upgrades. It functions similarly to a CHOICERenovation loan, but you can combine it with other Fannie Mae products like HomeStyle Energy (designed for home improvements intended to conserve energy, cut utility costs, and increase the home’s resilience against natural disasters) and HomeReady (designed for low-income borrowers).

EasyPath™ Renovation

EasyPath Renovation is a program that allows you to roll your mortgage and renovation costs together, without having to hire a contractor or make big purchases on your credit card. Designed for home updates completed through major retailers like The Home Depot, Lowe’s, and Menards, EasyPath can be used with Conventional renovation mortgages like CHOICERenovation and CHOICEReno eXPress. It’s important to note that EasyPath itself is not a mortgage, it works with your renovation home loan to help you maximize the benefits.

EasyPath highlights

• Loan amount can be based on the projected value of the home after renovations
• Leverage the same interest rate as the home loan instead of your credit card
• Cardinal makes 100% payment to the retail store to purchase and install the project
• Fixed and adjustable rates available

How do I know which refinance for home improvements is right for me?

Like any big financial decision, there are a lot of factors to consider before committing to a renovation refi. Some of those will be unique to you, but here are a few key questions to ask yourself to narrow down your financing options.

What’s the scale of my planned renovations?

As we covered in this blog, different refinance mortgages are designed for different types of home projects. If you’ve got smaller updates in mind (like fresh paint, new floors, or new appliances), a loan like CHOICEReno eXPress is likely a better fit than CHOICERenovation or vice versa. Some loans, like HomeStyle Energy, are created for very specific types of updates. So, if you’ve got specialized renovations in mind, there might just be a niche loan for that.

How much equity do I have in my home?

Your home equity is what your home is worth in the current real estate market, minus the amount owed on your home loan. If your equity is high, a cash-out refinance is a popular way to leverage that equity. Plus, you can use any funds left over after renovations however you see fit.

What’s my credit score?

The importance of your credit score doesn’t diminish after buying your home. When you refinance, it still impacts the rates you can get and which refinance loans you can qualify for. If your credit score is higher, Conventional renovation loans might offer more competitive rates. If you’re still building your credit score, government-backed options like FHA 203(k) could offer you the flexibility you need.

At the end of the day (and this blog), the right mortgage lender should provide all the guidance you need to decide on the best way to fund your home renovations. So, don’t stress too much about having all the answers before you start the process. You’ve got this!

Rates aren’t the only reason to refi. It’s also a great way to fund home upgrades like new flooring, landscaping, and even structural changes.

The post Refinance for Home Improvements: How to Choose Your Best Fit appeared first on Cardinal Financial.

Home improvements for tax deductions to consider

Home improvements that qualify for tax deductions typically fall into one of these four categories:

• Renovations for medical conditions
• Eco-friendly home upgrades
• Home office additions
• Improvements made to sell your home

However, as with all things taxes, it’s not that simple. Which home improvements are tax deductible depends on the scale of the project, how you use the renovated space, and more detailed criteria. Plus, some states may have different tax requirements than others. With that in mind, let’s get into what you can generally expect to qualify.

Renovations for medical conditions

Accessible home modifications are often eligible for tax deductions. These include medically necessary home improvements intended to make the home livable for a person with a disability who resides in the home.

Common deductible home improvements for accessibility

• Widening doorways
• Installing stair lifts and ramps
• Installing voice-activated control systems
• Installing handrails and grab bars throughout the home
• Converting standing showers and tubs to include accessible seating

Eco-friendly home upgrades

In case helping out the planet (and lowering your utility bill) wasn’t incentive enough to go green, many home improvements for energy efficiency can help you qualify for more tax deductions. Barring very few exceptions, these deductions can only apply to your existing home, not a new home you’re constructing from the ground up. 

Common deductible home improvements for energy efficiency

• Installing ENERGY STAR-rated doors and windows
• Installing ENERGY STAR-rated appliances
• Installing solar panels
• Replacing insulation materials

Pro Tip: What does an ENERGY STAR rating actually mean? ENERGY STAR-rated products meet strict energy efficiency standards set by the US Environmental Protection Agency. Learn more here.

Home office additions

If you run a business from home, you may be able to deduct that space from your taxes. In general, your home office needs to be an exclusive part of your home that you use only for conducting business on a regular basis. Your home office should also be your principal place of business. If you spend 9-to-5 at a storefront and use your home office to catch up on overtime tasks, that home office space likely won’t qualify. 

Common deductible home improvements for your home office

• Installing new equipment needed for work (such as a new printer)
• Renovations made to your entire home that impact the office (such as new floors throughout)
• Repairs made to the office exclusively

Pro Tip: Most home office tax deductions are based on the percentage of your home’s square footage that the office occupies. So, first things first, bust out that measuring tape.

Improvements made to sell your home

If you sell your home for more than you paid for it, that’s called capital gain. And in tax world, capital gain is, you guessed it, taxable. Luckily, it’s possible to reduce the amount you’re taxed for that capital gain based on how much money you invested in the home. Even if those renovations weren’t necessarily made with a sale in mind at the time, you could still qualify. 

Common deductible home improvements for home sales

• Structural additions, like a new garage
• Landscaping installations, like a swimming pool or firepit
• Plumbing or HVAC upgrades
• New flooring

As a general rule of thumb, upgrades required to maintain the livability of your home do not qualify. For example, the cost of repairing a leak in the ceiling won’t be eligible for a deduction.

Other potential home improvements for tax deductions

If you own a rental property, home improvements generally are not deductible. However, you may be able to deduct the cost of necessary repairs to the property. Whether or not a home improvement project on a rental property is considered deductible essentially comes down to whether that repair was necessary to make the home livable (deductible) or whether it was simply enhancing the space (not deductible). Additionally, you should look into specific state or local tax deductions for home improvement projects. Depending on where you live, you may have more options than you think.

Bottom line? Homeownership can offer so much more than just a place to live. Tax deductions for home improvements are just one way to make the most of your investment.

This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before making the decision to buy or refinance a home.

Not only can renovations boost your home’s value, but some projects could qualify you for more tax deductions.

The post Top Home Improvements for Tax Deductions appeared first on Cardinal Financial.

Pro Tip: Saving up for renovations? Check out our best money-saving strategies here.

5 DIY home renovation budget tips

• Make small changes first
• Embrace the paint
• Focus on your floors
• Rethink your storage space
• Demo it yourself

1. Make small changes first

The temptation to give your home a big overhaul is understandable, but you might be surprised what a significant difference small updates can make. So, before you start knocking down walls and ripping out cabinets, take inventory of small details that are easy, cost-effective swaps. This could include:

• Replacing hardware on drawers and cabinets
• Installing decorative switch plates over your standard light switch covers
• Adding statement fixtures in focal lighting points like your dining room, entryway, or front porch
• Updating your decor palette (darker tones add depth and drama, while lighter tones can help open up your space)

If small changes still aren’t doing the trick, it’s time to take it to the next level: Repainting.

2. Embrace the paint

Painting sometimes gets a bad rap for being a pain, but it’s well worth the work. To get the biggest bang for your buck, start with accents like trim, cabinets, or even a single accent wall. For best results, try these paint job tips and tricks:

• Paint during dry weather. Humidity makes it harder for paint to dry, resulting in more drips and uneven patches.
• Invest in the right tools. Make room in your budget for quality brushes, roller covers, and tape to save yourself a lot of frustration and do-overs.
• Use primer. If you’re considering renovations, we’re assuming the walls aren’t in pristine shape to begin with. Before applying paint, a primer base will ensure it all goes on evenly.
• Start at the top and work your way down. The last thing you want is paint dripping down onto the surface you thought you just finished.

While paint is a cost-effective update, you may want to avoid choosing colors that are too on-trend for your DIY home renovation. Unless, of course, you want to paint it all again in a year or two. If that’s your thing, don’t let us stop you. Otherwise, neutrals are always a safe bet.

3. Focus on your floors

Refreshing your flooring may seem like a lot of work, but it’s actually one of the more budget-friendly DIY projects out there. Plus, there are a lot of simple ways to give your floors a new look. If you’re working with a natural wood floor, try sanding it and applying a new coat of varnish. Peel and stick tiles are also an easy option, especially for smaller spaces like bathrooms and utility rooms. A fresh coat of paint can also spruce up your floors, just make sure to plan your painting schedule for a time when you can be out of the house long enough for it to dry without getting stepped on.

4. Rethink your storage space

Storage may not be the first thing that comes to mind when you remodel. After all, isn’t the point of storage to keep things out of sight, not draw attention to them? Not necessarily. Open shelving’s moment may be passing, but implementing stylish storage into your home can still involve minimal effort with a big payoff.  Some easy-to-update options include:

• Portable kitchen islands
• Free-standing bathroom cabinets
• Ottomans and benches with storage
• Stylish entryway racks
• Headboards with built-in shelving

5. Demo it yourself

Finally, the fun part. Breaking things down requires less finesse than building, but don’t dive in without brushing up on some fundamentals of demolition. Experts recommend staying away from demo on interior spaces unless you’ve done it before. Otherwise, you risk knocking down a load-bearing wall or damaging wiring and plumbing. On the other hand, outdoor spaces like a deck or porch should be simple enough for a novice to handle.

If the DIY route isn’t for you, renovation loans can help you finance your professional home updates and your mortgage in one convenient process.

Are there any other DIY home renovation tips to know?

You’re investing more than money when you DIY. You’re also investing your time, energy, and creativity. So, before taking on a DIY project, remember that it will probably look worse before it looks better. Don’t get discouraged halfway through your renovations! The mess and inconvenience now are well worth you loving your space later (and the boosted home equity doesn’t hurt, either).

The post DIY Home Renovations on a Budget appeared first on Cardinal Financial.