In a growing housing market you can buy a house value one year and in the next year the value of the home will actually increase by a few percentage points from one year to the next. You would then be able to borrow money against that added value from a lending institution and use that cash for a big home repair project. So if you bought a home for $180,000 a few years ago it might actually be worth $190,000 now with normal economic growth.

Today many people don’t have that extra home value which is known as “equity.” Most housing prices have actually plummeted in the past year or so, which means a lot of people are now living in houses that are now worth less than what they originally paid. When you owe more money on a house than what it is worth then you are said to be “underwater” with your mortgage.

If you’re looking for a big home improvement loan then you may want to think about applying for an FHA home improvement loan from an eligible loan partner. There are lots of sellers of these kinds of loans, they offer a low interest rate and you can be eligible to pay it off over a generous 20 years. Just about any one who owns a home can apply for an FHA loan and eligibility is less restrictive than most traditional lending institution loans. You do not have to have equity in your home to apply for an FHA Title I home improvement loan.

Another good way to keep the high price of a home improvement project down is to do at least some of the work yourself. For most home improvement jobs the largest expense often comes from the amount of manual labor involved, so by taking on some of that work yourself, you can really shrink the total cost of the overall job. There are lots of affordable DIY home improvement jobs most people can do around their houses with just a little bit of knowledge and some elbow grease.

If you have a important home repair that needs to be done, don’t let a lack of equity prevent you from obtaining the money you need to make the improvements. Most manageable home repairs can become major headaches if they are allowed to go unaddressed for too long. And, as you can guess, large home repairs always end up costing more than the little ones.

Want to read about more ways you can take out a loan for your home improvements? There are lots of different home improvement loan options available today depending upon your credit score and home value.

Of course many improvements have become much more involved and often require completely changing a room rather than just putting up a little paint and moving around some furniture. Many large home improvement projects are costly enough that it’s challenging to save up all the money you need all at once. Here are 3 things you can do to you can make a home improvement less expensive:

Do Little Bits of the Project At A Time: A lot of home improvement jobs are really a group of smaller tasks all strung together. When you remodel a kitchen you are really refinishing, replacing cabinets, adding in new fixtures and doing a number of little added things. Instead of putting out the total amount of cash all at once, why not remodel one aspect of your house each year so that the cost is spread out over a longer period of time.

Hardware Store Credit Cards: If you’re able to buy all your materials from a store with a credit card you may be able to spread the expenses of the home improvement out over many months, making it appear much less costly. The best home improvement credit cards can often be used to pay for supplies as well as services. Many home improvement stores such as Ace Hardware and Menard’s offer low fee credit cards with no interest or no payments for a limited amount of time.

Do The Work Yourself: Finishing a home improvement project by yourself is a great way to build your confidence and save yourself a bunch of cash! Even demolition work can be completed on your own if you are cautious. If you are really handy then you might be able to finish your entire home improvement project without hiring help and you could save hundreds of dollars in labor expenses. Not everyone is a home improvement professional, but most people can learn some simple home building and upgrading skills.

When it comes to repairing your house, don’t forget that you only have to please yourself. Do not be talked into paying more for a home remodel than you feel comfortable. Most people end up spending many years in the same house, so taking your time with home improvements can actually save you cash and allow you to enjoy watching your house become your palace!

Finances are tight for a lot of people right now, but you can learn how to modify your home loan with your bank so that you have extra money available for those home improvements.

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When you borrow money with an unsecured loan, you are not offering anything up for collateral. An unsecured loan is given based on your past credit rating and your current salary level. You don’t have to have any equity in order to borrow money with an unsecured loan. Most hardware store credit cards are essentially unsecured loans. Unsecured house improvement loans can almost always be used if you have zero equity in your house.

Unsecured loans are good for smaller house improvement loans which you can pay off quickly. Hardware store credit cards are good to use for minor home improvement projects that are under $2,000 because the application process is usually fairly easy. Some home improvement store credit cards even offer zero percent interest rate or discounts on merchandise for a fixed period of time.

Secure loans are loans in which the lending institution has some sort of collateral or item which they technically “own” until you pay it off. When you finance a car or buy a house with a mortgage the bank technically owns what you bought until you’ve paid off the debt amount with interest. With a secured home improvement loan your house is the collateral. If you default on your loan then the bank can take your house or car and sell it in an effort to regain some of the money they lent you.

Secured house improvement loans often have more paperwork but they also usually offer a smaller interest rate because they are more safe for financial lenders to give out due to the collateral involved. You may even be able to deduct the home improvement financing interest amount from your yearly taxes!

Both secured and unsecured house improvement loans have a purpose and can really help you upgrade your home if you don’t have the cash needed readily available. Be sure to do your homework and make sure you can actually repay the loan on time.

Want to learn more? You may be able to get a home improvement loan even if you have poor credit or no home equity.