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You might think that a mortgage company is going to push a home loan for every little home improvement project you may want to do. But here's the thing about doing that: not everyone needs to finance home improvements. It's a shocking truth some lenders don't want you to know. But it's the truth. Not everyone needs to borrow money for home improvement financing, just like not everyone should buy a house. Sometimes renting is better for some folks, just like some folks can perform do-it-yourself upgrades with no financing.
This is a story about how I used the refinance remodel option to get a new kitchen. Once upon a time I wanted a new kitchen. My wife and I looked around our house and realized that we'd be here for a long time, and it was time to invest some money in one of the rooms where we spent most of our time. When friends come over, we end up shooting the breeze in the kitchen. Between food prep, cooking and clean-up we're in the kitchen almost every night for at least a couple hours it seems like. So as we looked around the kitchen that looked like it was built and decorated in the 1980s we decided it was time for a remodeling project. The problem: cost.
I'm here to announce my candidacy for president in 2012. No wait...this is an article about FHA 203k candidates. Never mind.
By now you may have heard of the FHA 203k home improvement loan. If not, the basic gist of it is that you can buy a house (or refinance your current home) and finance renovations and repairs directly into the mortgage. You pay one house payment, which takes care of the principal of the house and the improvements you've had done all at once. That's the basic idea. Within this renovation financing option you have 2 directions you can take: Full 203k and the 203k Streamline.