WHAT IS A RENOVATION LOAN?
Designed for home rehabilitation purposes, FHA 203(k) loans can help pay for your home renovations. These loans are available both as a refinance and purchase. Thus, you can borrow against the equity in your home for home improvement and you can also get a single mortgage to finance both purchase and renovation of the home.
FHA 203(k) Loans can be a great option for home buyers who can meet these requirements:
If you meet these requirements, you may be able to qualify for an FHA 203(k) Loan.
HOME PURCHASE WITH PLANNED IMPROVEMENTS VIA FHA 203(K) LOANS
To encourage revitalization of older Southern California neighborhoods or damaged homes, FHA provides two types of loans to help homebuyers reserve a portion of loan funds to accomplish non-structural and structural repairs.
A standard 203(k) loan is provided for properties with need for structural upgrades.
203(k) Eligible Repairs and Improvements include:
Repair/Replacement of roofs, gutters, and downspouts
Repair/Replacement/Upgrade of existing HVAC, plumbing, and electrical systems
Ineligible Repairs include:
A Limited 203(k) loan covers non-structural upgrades, such as painting, new counters, cabinets, patching holes, replacing doors, repair/installation of HVAC systems, and purchase/installation of new appliances. The maximum repair amount which can be financed using a Limited 203(k) loan is $35,000 with no minimum requirement for repairs.
Eligible SoCal properties for a 203(k) loan include:
TIPS FOR RECEIVING LOANS TO RENOVATE YOUR HOME:
Before applying to receive a home renovation loan, decide as best you can regarding how much money you will need to begin your home renovation. If you hire a contractor, ask them to give you an estimate on the total cost of the home repairs. Once you have that specific number, discuss the possibility of a home renovation loan with a us. Different loans offer different amounts to borrowers, so talking to a licensed Loan Officer can help determine the specific loan and amount that fits your project’s goals.
For any further questions about the types of home renovation loans we offer or whether you qualify for an FHA 203(k) loan, Contact Us Today!!