4 Situations a Package Loan Can Benefit a Home Buyer

A package loan is a unique lending tool that allows home buyers to use their money on multiple items. With a package loan, you can benefit in a number of ways. Many people do not fully understand how this type of loan can benefit them in the long run. Here are a few situations where a package loan could benefit a home buyer. 

1. Buy a Home and Furnish It

Package loans are great when you need to buy a new home and furnish it. Many new homeowners do not have all of the things that they need for a new home. Therefore, it will be necessary for them to spend quite a bit of money on furniture and things for the house. Instead of going out and getting a retail credit account to buy all of the furnishings, they can just lump it in with the package loan. This allows you to make one payment instead of several. You will also be able to make a much lower monthly payment for the furnishings as you are amortizing the loan over 30 years instead the short term loan that you could get for it. 

2. Fixing Up the House

Another situation where a package loan could come in very handy is when you need to buy a house and fix it up a bit. A package loan will allow you enough funds to do both things. You can get the loan for an amount over what it cost you to buy the house and then use the extra money for expenses. You may need to buy new carpet and flooring. You might need to do some major repairs on the inside or outside of the house. Regardless of what you need to do, you could potentially get the money that you need for it through a package loan. This will enable you to get a great deal on a house that needs a little work and afford to fix it up at the same time.

3. Consolidate Debt

Package loans can also be very beneficial when you need to consolidate all of your debt into one account. The great thing about this is that you will potentially only have to make a single payment each month. If you are approved for a big enough loan, you could put your credit card balances, car payments, student loans, and everything all on the same loan. This could lower your monthly bills overall and make it much easier to manage. 

4. Buy Multiple Items

With a package loan, you can potentially buy more than just a house. If you want, you could make another big purchase such as buying a new car. This could save you money on interest as well as make your monthly payments smaller. You won't have to worry about getting a separate loan for the item and everything will be that much simpler for you.