Karen Kemmerer
701 W. Market Street
Perkasie, PA18944
Phone: 215-453-7653 x1125
Office: 215-453-7653
Cell: 267-446-7748
Fax: 267-354-6831
email: kkemmerer@remax440.com
RE/MAX 440
Karen Kemmerer

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Survey: Financing Hard to Come by for Remodels

December 11, 2014 4:21 am

How difficult is it for homeowners to get financing for a remodeling project?

Recent research from the National Association of the Remodeling Industry (NARI) concludes that the majority of professional contractors place obtaining financing in a ‘neutral’ to ‘difficult’ range. NARI’s Remodeling Business Pulse, which monitors the health of the remodeling industry, indicates that just 30 percent of contractors believe it is either ‘easy’ or ‘very easy’ for clientele to secure funds.

An overly cautious financing company creates the biggest barrier for homeowners, according to 38 percent of professional contractors surveyed. High-cost projects relative to the home’s value were also a factor, with 27 percent of professional contractors reporting that cost vs. value concerns also resulted in obstacles for homeowners.

Poor credit history followed, but only for a few – just 11 percent of professional contractors believe it to be an impediment to a remodel.

The research also reveals:
  • If cash or checks were not used, banks or credit unions were the dominant source of financing (72 percent). Credit card usage for renovations accounted for only 20 percent of responses.
  • Very few professional contractors arranged financing for their client (6 percent).
  • Ninety-six percent of professional contractors accepted checks as a form of payment; one-quarter accepted credit cards, home equity loans, bank home improvement loans or cash.
Source: NARI

Published with permission from RISMedia.

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