DES PLAINES, IL — Caution, expense of the project and poor credit history are some of the stumbling blocks homeowners are facing when attempting to secure financing for home remodeling projects, according to a new survey by the National Association of Remodeling Industry.
Remodeling professionals who work closely with homeowners described the financing climate as “neutral to difficult.” None of the research panel members indicated that it was “very difficult” to get financing. And, about 30 percent indicated that it was either easy or very easy for its clientele to secure the needed funds.
When asked about the problems in getting financing the top responses were:
- The financing company being overly cautious was seen as the biggest barrier (38 percent).
- The project being too expensive relative to the home’s value was next as a problem (27 percent).
- Poor credit history was only selected as an issue by 11 percent.
A bank or credit union was the dominant source of funds for financing, if cash or check was not used.
NARI’s Remodeling Business Pulse conducts quarterly research to monitor the health of the remodeling industry to help educate consumers, legislators and regulators with credible information about the remodeling industry.
Have something to say? Share your thoughts with us in the comments below.