You have your heart and mind set on a half level of the end of the century with a large plot near the highway and downtown. But friends and family feel a new home is a much better deal because warn about termites, faulty wiring and leaky pipes. You can go with a new house, but the journey of 30 to 40 minutes overwhelming. Do not give up its plans; you can make a home feel old again! With a home improvement loan, you can buy and organize their new home with a loan. Now you can have it all: the right house, the impressive quarter and the short ride to the center.
First, you must know your loan options.
There are 4 types of home improvement loans:
FHA Streamline 203KThis loan is for primary residences that have limited repairs under $ 35,000. The 203K only requires a payment of 3.5% on their purchase. So if you get a $ 200 000 loan, down payment once the contract price and repair, it is $ 7,000. The 203K Streamline is ideal for people who have a lower credit score of 640. No compensation consultant to manage this loan is for "simplified" and can be occupied immediately after closing. You can have up to three entrepreneurs who require a permit for any work on the ground. The contractor will receive a prize in the amount of 50% of the total contract amount and terminate the balance of payments at the end of work.
FHA 203K ConsultantThis loan is generally used for homes with repairs of more than $ 35,000 or requiring structural repairs to the foundation as well or pool. There should be a general contractor (GC), but there may be up to three contractors. The main difference between the loan and the Streamline is that you need to hire a consultant approved by HUD to work with the GC to protect the interest of the lender and the buyer and does draw a schedule for updating that funds are disbursed properly. Contractors are not paid in advance, and its action is based on the work done. HUD Consultant to know what money to get entrepreneurs on the basis of the amount of work done.
Home Loan RenewalIt is a Fannie Mae conventional loan that requires only 5% for primary residences, 10% less than a second home and 20% down to an investment property. If you put 20% down, you do not need mortgage insurance. This loan works like the 203K and has a category of power line and consultant.
Homepath improvement loanThis loan is held by Fannie Mae foreclosures and it can be for a primary residence, a second home or an investment property. You can put up to 3% of the main homes without a mortgage, but for real estate investments 15% down.
Most people do not know that these loans still exist, but now they do! The best part of these home improvement loans is that you work with a team and you do not have to renovate a house on their own dollar.
