Home Improvements Needed? Think 203k Loan.

Pic Credit to Danilo Rizzuti

MSNBC recently had an article on their site that said home improvements are on the rise.  The only problem is where are homeowners and homebuyers be able to find financing for these improvements.  The answer is the 203k loan.

Most people think the 203k loan is just for fixxing foreclosures, but that’s a myth.  Most people in California are using the 203k loan as a remodeling home loan since the home equity line of credit market has dried up.  The FHA 203k loan can do big remodeling jobs like adding on a bathroom or bedroom or simple cosmetic jobs like new carpet, paint, cabinets and even new appliances.

Another unique thing that can be done with the 203k loan is that if you are in the midst of a say adding on a room and the home isn’t inhabitable, you can finance up to 6 months of mortgage payments into the loan while it’s under constructions, so that way you don’t have to make double payments on the home in which you’re living as well as the home that’s being remodeled.

The 203k loan can also be used for existing homeowners who need to pull out cash to remodel and it’ll lend up to 97.75% of the appraised value!  There’s no home equity line of credit that can do that.

Simply put the 203k loan for homebuying is a loan where you can purchase the home and receive funds to remodel all in one loan and the work is done after escrow closes.  You can buy the home in as-is condition and do the remodeling after escrow closes.  Hopefully Realtors and the general public will realize this unique loan can do many things, including financing home improvements.

Best,

Kevin Walton

http://www.affordableloansbykevin.com

 

 

 

 

 

 

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