Interested in Buying a Fixer Upper Or Upgrading Your Current Home?
Home Renovation Loan
Are you not one to shy away from a house that is full of untapped potential, but don’t have the raw cash to fund it? Then there just may be a mortgage product that’s perfect for you!Look into our home improvement loans as your solution.
All too often buyers find a home they love, in the perfect neighborhood, but feel overwhelmed with the amount of repairs or remodeling necessary. An FHA 203k loan offers a solution to that problem by simply rolling the cost of those home improvements into your loan transaction. Once you’ve had an evaluation done on the estimated cost of the required repairs our mortgage professionals can factor that into the total loan amount along with any additional renovations removing the need for a hefty renovation budget.
203k Loan Rates
There are two different types of FHA 203k loans, Standard and Limited, and both loan programs are a 30-year fixed-rate mortgage. Standard 203k loans are for homes that need structural repairs, the addition of a room, a complete tear down(must leave foundation) or rebuild. Standard 203k loans are also for repair costs that exceed $35k regardless of the type of repair. A minimum of $5,000 in eligible repairs is required, from upgrading appliances to major renovations (no luxury improvements, like pools or landscaping are allowed).
Limited loans are for houses that need non-structural repairs, like painting, purchasing new appliances, kitchen and bathroom remodel, flooring, and air-conditioning systems.
Home Improvement Loans
Who Would Benefit from FHA 203k Loans?
- Homebuyers looking to take advantage of a low price on a home in need of repair or remodeling/updating
- Homebuyers hoping to expand or update a property to meet their needs
- Current Homeowners wanting to make improvements or upgrades to meet their family’s needs and increase their home’s value
What are the benefits of FHA 203k Loans?
- One loan, closing, and payment for both the mortgage to purchase or refinance the home and the funds needed for improvements
- Improvement funds are held in an interest-earning, escrow account and disbursed as the work is completed. On a limited, 50% is paid out to contractor 5 days after loan closing.
- Can finance up to six months of mortgage payments into the loan if the home is determined to be uninhabitable during renovations, only on a Standard 203k
Financing Home Renovations
This home improvement loan program may open up a lot of doors for would-be homeowners by allowing more options that you had previously not considered. This product isn’t just restricted to purchase transactions either, if you’re looking to refinance your home this could be a great option as well. Instead of moving on from a home that needs too many repairs it could be an excellent alternative to refinance and have those repairs financed into your new loan.
You don’t have to give up on the home you love even if it needs some improvements! Contact an On Q Mortgage Consultant to learn more about this unique home improvement loan product. Your perfect home could be as easy as a 203k loan with On Q Financial!