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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.
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.
A homeowner who loves their house may still look around and see opportunities to upgrade. Maybe you've outgrown your kitchen. Maybe you're in desperate need of an extra bathroom. Check your windows - are they too old and in need of replacing? Paying for any or all of these projects can get to be a daunting endeavor. Sure, many projects can be done in a do-it-yourself (DIY) weekend with minimal money. But what happens if the work is beyond your skill set, time and money? That's when it's time to consider a refinance mortgage to upgrade your home.
As foreclosures and bank-owned homes sit on the market longer, buyers run into a major problem: there's no one around to stay on top of maintenance, repairs or other issues. Or maybe the homeowners who walked away took things like appliances with them.