Home Improvement Loans: What You Can Finance and How

Home improvement projects take on many forms, whether it is fixing a leaky roof or a total kitchen remodel. Regardless of whether you are talking about improving comfort, adding value to your house, or undertaking necessary repairs, the right financial support is vital. A home improvement loan can assist there.

We know that your home is not just a place to live at TCECU, but an investment in your future. The right financing will help you transform your ideas on paper to reality, without depleting your savings, or unnecessarily risking yourself. So what can you finance with a home improvement loan and how can you do it intelligently?

What Is a Home Improvement Loan?

Home improvement loan is a personal loan that is specifically used to finance renovation, upgrading, and repairing. These loans are also appealing to homeowners who might not have accumulated much equity in their homes because unlike a home equity loan or HELOC, you are not required to put your home up as collateral.

You take a fixed sum of money and usually the interest rate is fixed and the repayment period is between two and seven years. This enables you to plan your project at a comfortable level and pay in manageable monthly instalments.

What Can You Finance With a Home Improvement Loan?

Home improvement loans are versatile and can be used for a wide range of upgrades and repairs. Here’s a closer look at what you can typically finance:

1. Kitchen and Bathroom Remodels

Modernizing a kitchen or updating a bathroom can increase your home’s value and improve your daily living experience. A home improvement loan can help cover costs such as new countertops, cabinets, appliances, plumbing work, or tile.

2. Roofing and Structural Repairs

If your roof is leaking or your foundation needs work, these aren’t projects you can postpone. Financing these essentials ensures you protect the integrity and safety of your home while spreading out the cost over time.

3. Energy-Efficient Upgrades

From replacing old windows to installing insulation, energy-efficient upgrades can reduce your monthly utility bills. You might even consider adding solar panels or upgrading your HVAC system to a more energy-saving model. Many lenders, including TCECU, also offer green loan options tailored for energy-efficient improvements.

4. Home Accessibility Modifications

Making your home more accessible—whether it’s adding ramps, widening doorways, or modifying bathrooms—can make a big difference if you or a loved one has mobility challenges. These are typically eligible expenses under a home improvement loan.

5. Outdoor Projects

Landscaping, fencing, patio installations, or even constructing a deck can turn your yard into a functional living space. These projects are often covered under the loan and can increase curb appeal.

6. Interior Design and Cosmetic Improvements

Not all improvements need to be structural. Painting, flooring updates, new lighting fixtures, and furniture upgrades may be included in your project budget. If it enhances your home’s appeal or comfort, it’s worth considering.

How to Apply for a Home Improvement Loan at TCECU

At TCECU, we aim to make the process of getting a home improvement loan clear, fast, and tailored to your needs. Here’s how it typically works:

1. Check Your Credit and Budget

Before applying, take a look at your credit score and your current financial situation. A strong credit history can help you qualify for a lower interest rate. Equally important is reviewing your monthly budget to understand how much you can comfortably repay.

2. Define Your Project Scope and Budget

The more accurate your estimate, the more confident you can be when borrowing. Whether you’re hiring contractors or doing the work yourself, try to itemize costs so you know how much you really need to borrow.

3. Submit Your Application

TCECU’s loan application process is simple and secure. You can apply online or visit our branch. You’ll need to provide income verification and information about your project.

4. Review Terms and Get Approved

Once approved, we’ll walk you through the terms of your loan, including the interest rate, repayment term, and monthly payment amount. At TCECU, we never push products you don’t need—our goal is to make sure your loan fits your budget.

5. Receive Your Funds

Funds are disbursed quickly, often within a few business days. You’ll have the flexibility to pay your contractor or purchase materials directly.

Benefits of Choosing TCECU for Your Home Improvement Loan

TCECU is a credit union, not a big bank. That means our focus is on our members, not shareholders. When you finance your home improvement through us, you can expect:

• Competitive Rates – Our rates are typically lower than traditional lenders.
  
• No Prepayment Penalties – Pay off your loan early with no extra charges.
  
• Friendly, Local Service – Our team is right here in your community and ready to help.
  
• Flexible Terms – Choose a loan term that fits your goals and monthly budget.
  
• Easy Online Access – Manage your loan 24/7 through our online banking platform.
  

Alternatives to Consider

While home improvement loans are a great choice for many, you might want to compare them with other financing options depending on your situation.

• Home Equity Line of Credit: If you have built up equity in your home, a HELOC might offer a lower interest rate and revolving access to funds. However, it does use your home as collateral.
  
• Credit Cards: For smaller, short-term improvements, using a low-interest or 0% introductory rate credit card might be an option—but this can be risky if not paid off quickly.
  
• Green Loans: If your focus is on energy-saving upgrades like solar, TCECU offers loans designed specifically for environmentally friendly projects.
  

Plan Smart: Avoid Overborrowing

It’s tempting to add extras to your renovation once you have access to funds. But it’s important to borrow only what you need and can repay comfortably. Avoid the trap of overspending on non-essential upgrades just because financing is available.

Use the project to increase the long-term value of your home—not to stretch your budget thin.

Start Your Project with Confidence

Your home is your foundation—and with the right financing, it can grow with you. Modernizing, repairing, or expanding, a home improvement loan with TCECU offers the flexibility and peace of mind you require.

Have questions? We will assist you to consider your options, learn the terms, and make intelligent borrowing decisions. We want to make your home improvement vision come true, responsibly, affordably, and locally.Visit tcecu.org or stop by our branch to learn more and start your application today.