By Marina Locks
May 7, 2013
Are you looking to do a home renovation? Would you like to re-do your kitchen or baths? Do you need new flooring? You might want get a new roof or repair a damaged section of your house. Making improvements to your home can be very costly, and it can be hard to come up with thousands of dollars to pay the contractor’s. If you are looking to improve your home, but lack the necessary funds, consider applying for a Home Improvement loan.
Definition
Home Improvement loans, or FHA 203(k) loans, are a type of federally insured mortgage loans that are used to fund renovations and repairs. These loans can be made on a borrower’s primary residence for up to a maximum of 110% of the after improved value of your home. There is a minimum of $5000 of required repairs with no maximum (subject to FHA’s maximum loan limits). These loans can be made to refinance your existing home or purchase an existing home.
Requirements
Loan qualifications are the same as every other FHA forward mortgage. A potential applicant will need to credit and income qualify. You will need to get an estimate from a state licensed contractor for all work to be performed. If total repairs exceed $35,000 or if repairs are of a health, safety or structural nature than a inspector form the Department of Housing & Urban Development will be required to supervise the repairs.
Getting the Loan
If you would like to see if you will qualify for a Home Improvement Loan, contact one of our Licensed Mortgage Loan Originators by clicking here.
These blogs are for informational purposes only. Make sure you understand the features associated with the loan program you choose, and that it meets your unique financial needs. Subject to Debt-to-Income and Underwriting requirements. This is not a credit decision or a commitment to lend. Eligibility is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral, and underwriting requirements. Not all programs are available in all areas. Offers may vary and are subject to change at any time without notice. Should you have any questions about the information provided, please contact us.