Heartland Financial Offers Home Improvement Loan To Low-income Clients



Heartland Financial USA Inc., or HTLF, a bank holding company based in Dubuque, Iowa, offers a home improvement loan product aimed at low- and middle-income homeowners through its 11 chartered units in 12 states.

This fixed rate installment loan is secured by the borrower’s primary residence. It is designed for 60 months with a dollar amount ranging from $ 5,001 to $ 14,999.

“This is another way to help serve the communities in which we live,” said Brian Jensen, senior vice president and chief marketing officer, HTLF. “We know that many large national banks have announced that they termination of lending, we are cutting down on lending, but in reality we are doing the opposite. “

Acceptable property value will vary based on zip code and low- to middle-income segments.

Since the start of the pandemic, home improvement activities have grown, fueled by several similar factors, including: expected rise in interest rates over the next two years is constantly increasing house prices and long-term lack of inventory

According to BuildFax, existing home maintenance – along with renovations, a subset that includes renovations, additions, and changes – has increased from year to year for each of the past 12 months.

In July, the volume of maintenance work increased by 10.19% compared to 2020, with an increase in repairs by 12.31%. Cash spent on maintenance in July increased by 29.26% over the prior year, while the renovation subset increased by 31.24%.

This uptrend is unlikely to slow down. According to the First American Potential Home Sales Model, the average length of stay of an American in his current residence reached an all-time high of 10.62 years as of June.

“A number of factors contribute to homeowners staying in their homes longer, including seniors who age on the spot, some homeowners feel attached to their homes, and homeowners are afraid to sell because there is nothing better for them to buy from. Mark Fleming, America’s first chief economist, said in a blog post. “On an annualized basis, homeowners’ residences in their homes increased 3.8%, causing potential home sales to decline by about 160,000.”

Annual growth in home renovation and renovation costs will reach 8.6% by the second quarter of 2022, according to Joint Center for Housing Research Harvard University’s Second Quarter Leading Indicator of Remodeling Activity Index.

“Home renovations are likely to grow at a faster pace given the continued growth in home sales, rising home prices and new home construction,” said Chris Herbert, managing director of JCHS. “The significant increase in housing permits also indicates that owners continue to invest in larger and replacement projects.”

Annual renovation costs for owner-occupied properties are expected to exceed $ 380 billion by mid-2022, added Abby Will, deputy project director for the JCHS Future Modernization program.

This program is available in all 11 authorized HTLF banks and each will keep the loan in their own portfolio.

“It’s not the only type of thing we’ve done, but it’s just another component of a broader strategy to really serve the communities we participate in and ensure that we have credit products for everyone,” Jensen said.

HTLF launched Buy Local earlier this year, which provides a loan of up to $ 5,000 for incidental expenses during local purchases to support small businesses.


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