If you’ve lived in Tornado Alley long enough to experience tornado season you know how destructive tornadoes can be. One of the most effective ways to protect your family against tornadoes is by installing a tornado shelter. Installing a tornado shelter can be costly though, and this is where tornado shelter loans come into play. This post will explore what tornado shelter loans are, how they work, and what you need to consider before applying for one.
What are Tornado Shelter Loans?
Tornado shelter loans are specific types of loans designed to help homeowners finance the installation of tornado shelters in their homes. Having a tornado shelter in your home means peace of mind during tornado season for you and your family. Many tornado shelter installers offer shelters that are rated to protect against up to EF5 tornadoes. Tornado shelter loans cover various types of tornado shelters, including underground bunkers, safe rooms, and in-home shelters.
How Do Tornado Shelter Loans Work?
These loans function like most other types of loans, though they are often provided with lower interest rates and favorable repayment terms. Here’s a general idea of how they work:
1. Loan Application
You apply for a loan through a credit union, such as True Sky or any other financial institution that offers tornado shelter financing. The application process will typically involve a credit check and assessment of your financial situation.
2. Approval and Funding
Once approved, the loan amount is given to you or to the company installing the shelter. Loan amounts vary based on the type of shelter you want and its installation costs.
You repay the loan over a set period, with interest. The terms and interest rates vary based on who you obtain the loan from and your creditworthiness.
Factors to Consider Before Applying
1. Cost of Installation
Research the cost of different types of tornado shelters to determine how much financing you will need. There are several different kinds of tornado shelters, each with varying costs.
2. Loan Terms
Understand the loan terms, including interest rates, repayment period, and any fees associated with the loan.
3. Credit Score
Your credit score will impact your ability to obtain a tornado shelter loan and the terms you are offered. If you are looking to improve your credit score, you may want to consider True Sky’s Firm Foundation loan, which you can read more about here.
4. Types of Shelters
Different shelters offer different levels of protection as well as occupant capacity. A professional tornado shelter installation company can help you find the right tornado shelter for your specific needs.
5. Insurance and Value
Check with your home insurance provider to see if installing a shelter will affect your home insurance rates. In some cases, it may even increase your home’s value.
If you are considering having a tornado shelter installed and would like to know more about what loan amounts are available or repayment terms, set up an appointment with one of our loan specialists here. If you are ready to apply for a tornado shelter loan click here to be taken to the loan application page.
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