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| FINANCING |
Frequently Asked Questions
1. Why should I choose United Services of America to do my financing?
United Services specializes in obtaining home improvement loans for our customers. With over forty years of experience in the home improvement industry, we have helped thousands of homeowners to obtain the right financing to meet their individual needs. We only work with lenders that we trust and with whom we have developed strong working relationships.
2. What should I look for in finding the right loan?
Look for a loan that offers an affordable monthly payment, rather than being concerned about the length of the loan. You can always pay the loan off early, with no penalties. We will work to find you the best interest rate and terms that are available to you.
3. What is a secured loan versus an unsecured loan?
A secured loan uses your house as collateral, and usually offers lower interest rates and more flexibility in loan terms. An unsecured loan is a signature loan only, with no collateral. This type of loan is ideal for those with good credit. The interest rates for unsecured loans are typically higher than for secured loans.
4. What is a home improvement loan versus a home equity loan?
For all intents and purposes, there are no differences between the two. Both are used to obtain funds to fix-up your home. The loans are at a fixed rate. Your house is used to secure the loan.
5. What does equity mean?
Your equity is the monetary value of your home beyond what you owe on it. For example, if your home is valued at $150,000 and you still owe $50,000 through a mortgage, your equity is $100,000.
6. What is a typical interest rate for a home improvement loan?
While interest rates often fluctuate, a typical interest rate for a home improvement loan is anywhere from 6.99% to 13.99%. Your interest rate is dependent on many factors, including your credit history, how long you have lived in your home and your current income.
7. Are home improvement loans tax-deductible?
Loans that use your house as collateral, such as secured loans, give you the ability to deduct your loan interest payments from your federal income taxes if the funds are used for home improvements. Most loan fees are also tax-deductible.
8. Why do some loans have fees?
Some banks offer loans with no fees. Other lenders charge processing fees to cover research, title searches, appraisals, etc.
9. What is a settlement statement?
The settlement statement will show you all of the fees associated with the loan, and who the loan money is designated for.
10. What is a refinance?
Refinancing involves consolidating your mortgage(s), and bills if you would like, to relieve payment stress and look for a more competitive interest rate. Refinancing will involve some loan fees. The fees are dependent on the size and type of the loan.
11. How can you delay my payments for a year?
Banks often offer specials to customers as an incentive to use their services, such as offering delayed payments with deferred interest for three-months up to one year on unsecured loans. Though not as common, there are some options for delayed payments on secured loans.
12. What does "no-money down" really mean?
We ask for no money from you until the job is completed. If you get a loan, there is typically a completion certificate for you to sign or a verbal release with the bank before any of the funds are released to United Services.
13. Does my credit score affect my ability to obtain a loan?
Credit scores are not the only factor involved in getting approval for a loan. More important than your credit score is your payment history on your mortgage, your employment history and your total household income.
14. I'm out of a job. Can I still get a loan for my home improvements?
Yes, you often can still get a loan, providing you can prove that you can afford the monthly loan payment.
15. I have less-than-perfect credit. Can I still get a loan for my home improvements?
We work with specialty lenders to obtain financing for those with less-than-perfect credit. To aid this process, we always need a pay stub from both spouses. With a little patience and effort, we are often able to find you a loan that suits your needs.
16. How can United Services help me re-establish my credit?
For those with below-average credit, paying on a loan is a great way to re-establish your credit, as long as you pay your loan payments on time.
17. What happens if I am not approved for a loan?
If you are not approved for a loan, there are other options available, such as asking a friend or family-member to co-sign. Others will often use part of their savings or investments, such as a 401K plan, to fund their home improvements.
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