Something I saw from a fellow blogger that I thought would be interesting
Times have changed drastically over the last several years. Many people have been forced to move back home with their parents after college due to a lack of job prospects or too much debt. Other people have made the choice to have their parents or other older relatives move in due to health problems. But these issues usually require extra space that may not be readily available. Thanks to the FHA 203K loan, people can now finance the home addition that they need.
Basics of FHA 203k Loans
Up until recently, people that wished to add on to their home or make extensive remodeling repairs either paid cash for the project or borrowed money from the equity in their home. The problem arose when people did not have sufficient equity to cover the excess cost. But the FHA 203k will allow people to refinance their existing loan and get an extra $35,000 to use for home repair or remodeling ($35,000 max for the streamline FHA 203k program. If you need more, ask about the full 203k).
FHA 203k Loan Requirements
The FHA 203k loan is set up in such a way that the borrower, as well as the lender is protected throughout the whole process. In order to get approved for the loan a licensed contractor will need to submit an estimate of the anticipated renovations. An appraiser will need to review the proposal and make an estimate as to the new value of the property after the remodel is complete. As an extra precaution the money used for the rehab work will be held in escrow until the contractor is finished.
For those individuals that have simply outgrown their existing space, this is a very affordable way to stay in their current home and make necessary additions. People that are now caring for elderly relatives in their own home will also appreciate the ability to use some funds to increase accessibility to the home for handicapped persons.
Please visit our FHA 203k loan page for additonal program details or contact me below.
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