25 Percent of Homeowners Rely on Loans from Contractors

by Emily Blackburn

Modernize.com, a part of the home improvement and home services industry, recently surveyed more than 3,100 homeowners on 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 percent
  • Financing/Loan: 29.63percent
  • Other: 15.37 percent
  • Credit Card: 13.34 percent

Loan Option Preferences:

For respondents who indicated they would pursue financing/getting a loan, over 25 percent hope to obtain financing through their contractor.

  • A loan through my contractor: 25.33 percent
  • Personal loan: 13.09 percent
  • Home Equity Loan: 7.39 percent
  • Home equity line of credit (HELOC): 6.30 percent
  • FHA or VA Loan: 4.24 percent

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 percent
  • After choosing a contractor for my project: 18.55 percent
  • Before meeting with contractors/I already started researching: 13.27 percent

 

 

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