By Scott Staudt

 Many homeowners have come against a stone wall if they are looking for a home improvement loan today, since many of them do not have enough equity in their residence to act as collateral for the loan, due to falling home values, but there is a solution.


Peer to peer lending gives an option to homeowners in this bind. For those unfamiliar with peer to peer lending, think of it as the Ebay of the lending world, where lenders bid on lending to borrowers who need money. Eliminating commercial lenders in the meanwhile makes for a system that increases the return for lenders and lowers the price for borrowers.

The great thing for many homeowners fenced in by falling housing values is that peer to peer loans do not use the home as collateral for the loan. This unique solution can give homeowners the opportunity to obtain that needed home improvement loan and add the addition, install the new kitchen appliances or energy efficient windows he has been thinking about.

Your home is probably your largest investment, and adding to its value with new kitchens or bathrooms will surely pay off in the long run, even as you enjoy them today while you are still living in the house. And many other improvements, for example, new energy efficient appliances, or energy saving measures such as energy efficient windows, additional insulation and high efficiency furnaces may pay for themselves while you are still living in your home! With today's high cost of energy, high efficiency or energy saving measures can save hundreds of dollars in costs each month.

Applying for a loan is as easy as 1, 2, 3. Peer to peer lending sites are specifically designed to make the process easy for the borrower and for the lender alike. All the borrower has to do is 1) Create a loan listing 2) Put the listing on the site for auction 3) Watch as lenders bid for their loan. Business is still business, so your credit rating will still have an impact on your loan rate, but lenders are able to accept lower rates since there is no bank in the middle taking a piece of the profit.

Some lenders prefer small loans of about $1,000 or so, while there are many investors who are investing larger sums in their loan portfolio, but the average range is usually to about $15,000. This is just ideal for home improvement loans, which usually run a range from about $1,000 for a new shower or bathtub, to about $15,000 for a kitchen remodeling.

More information about peer to peer lending at engagement ring financing and find great rates on home improvement loans

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