Want to renovate your home’s 20th century-era kitchen? Or maybe you’d like to build that master bedroom of your dreams. You can—with the help of two mortgage programs designed to help homeowners pay for renovations designed to improve the value of a residence.
Fannie Mae offers the HomeStyle Renovation Mortgage, while the Federal Housing Administration (FHA) provides the 203(k) Program. Buyers can take out these mortgages when buying a new home. But they can also refinance their existing mortgage loans into a HomeStyle or 203(k) loan if they need to make improvements to their current homes.
These loans allow consumers to borrow more than a home is worth, as long as you use the extra money you are borrowing to pay for home repairs or renovations.
For instance, if borrowers want to buy a $150,000 home, they can take out a HomeStyle or 203(k) loan for $175,000. They can then use that extra $25,000 to fund the renovation of an aging kitchen or add another bathroom.
Borrowers will have to work with consultants who will study borrowers’ renovation plans and make sure that the homeowners are using the money for the repairs they promised to make.
But that extra work is worth it if it allows you to improve the value of your home while making it a better place to live for you and your family.
If you have questions about these loan programs, don’t hesitate to call us. We can help you determine which program is best for you. And we can guide you through the application process for both types of loans.
|Don’t Keep It To Yourself!|
|After you’ve read and reviewed this newsletter, we hope you’ll pass it on to those you know who are thinking about selling or buying a home this year. They’ll appreciate you thinking about them, and we’ll certainly appreciate the referrals. Your positive word-of-mouth is greatly valued. Thank you!|