Home Improvement Loans Are Not Only With Banks Now - By: Scott Staudt

If you, like so many homeowners today, would like to apply for a home improvement home, but have been closed out of the market because you haven't got enough equity in your home, there is another solution in today's market.

That solution is peer to peer lending. For those unfamiliar with peer to peer lending, think of it as the Ebay of the lending business, where lenders bid on lending to borrowers who need money. Eliminating commercial lenders in the process makes for a system that increases the return for lenders and lowers the price for borrowers.

And, peer to peer loans are personal loans, so collateral is not required, and therefore the value of your home is not part of the loan consideration. You can still get your home improvement loan to perform those desired or necessary changes, such as a home addition, a new kitchen or bathroom to replace that outdated mess, or new appliances or energy saving measures.

Home improvements are a great investment, because the value of your home will increase if you have an updated kitchen or an additional bathroom, plus you can enjoy these benefits even before you sell your home. In addition, there are other home improvements that save the homeowner so much money that they become self funding even as you enjoy them, such as high efficiency appliances, high energy rated furnaces or water heaters, new insulated windows and doors, etc. Energy bills are extremely high, and no one expects them to come down, so these types of improvements can save thousands of dollars annually.

The process of applying for a peer to peer loan is very simple and easy. Peer to peer lending sites make the loan application easy, not only for the borrower, but for the lender, which enlarges the pool of funds available for borrowers. Borrowers follow a three step process of Step 1: Follow the instructions to create your loan listing; Step 2: Upload the listing; Step 3: Monitor the bidding activity between prospective lenders. As would be expected, borrowers with the best credit ratings will be offered the best rates, but a rising tide floats all boats, so even applicants with less than perfect credit can expect to see an improvement in their rate over the rates that banks would offer.

There are lenders of all sizes on peer to peer lending sites, but historically, loans in the range of $1,000 to $15,000 are the most popular among bidders. From a new energy efficient washer and dryer for $1,000, to new appliances and countertops for your kitchen for $15,000, peer to peer lending makes them an absolutely perfect size for most home improvement loans!

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