HOME RENOVATION LOANS

In this new era of real estate financing, finding monies for home improvements, home repairs or to do some remodeling can be difficult.   Home equity loans have become more difficult to get and construction loans have almost completely disappeared. 

The FHA (Federal Housing Administration) has come to the rescue with the FHA 203K Home Renovation or Rehabilitation loan.    The 203K loan has become relevant because FHA has  increased their maximum loan limits in many California counties, making this a loan product to fill the void once filled by equity loans or construction loans.  Unlike a home equity loan that bases it lending off of the current home value, the FHA 203K Home Improvement Loan bases the lending on the AFTER IMPROVED value of the home.

The Renovation Loan is unique in that it is a one close loan that includes both the purchase or refinance money as well as the money for repairs, replacements or remodeling.    There are two different FHA 203K loan products: the FHA 203K Streamline loanand the Full 203K Loan.

Purchase

The renovation loan is a great loan option for people looking to purchase a foreclosed or bank owned property, a fixer upper, or a home that needs some updating.   This loan allows the buyer to purchase a home and turn it into their dream home.  This is a product that can only be used for the purchase of a primary residence.   If selecting this loan as a way to purchase a property, plan on a minimum of 60 days for the escrow.  203K guidelines are a bit stricter than on standard FHA loans and are very technical.   If you decide to go this route on a purchase, be sure to select a loan officer with experience doing this loan.

Refinance

If you are looking to remodel or update your current residence, this loan is a great product because the loan amount is based on "after improved" value.  With the decline in home values, stricter conventional guidelines and the near disappearance of home equity loans, finding funds to pay for your remodel or updating your home can be difficult to find.  Putting together your ideas for home improvements or a remodel can be time consuming and expensive.   Before getting started, CharityLoansMoney.com will be happy to send you an Report outlining the Proper Steps to take and the order so you don't end up spending unnecessary money.   Just complete the form below Got a Question and indicate in the comment section that you would like our FREE 203K Step-By-Step Guide.