Like the 203k, Home-Style Renovation mortgage provides a convenient way for borrowers to make renovations, repairs, or improvements totaling up to 50 percent of the as-completed appraised value of the property with a first mortgage, rather than a second mortgage, home equity line of credit, or other, more costly financing method. Eligible borrowers include individual home buyers, investors, nonprofit organizations, and local government agencies. Mortgage insurance can be waived after reappraised with value creating a <78% LTV.
Benefits to Borrowers:
The FHA 203K loan is a type of financing that is insured by the Federal Housing Administration. This allows the home buyer to immediately turn the house they just bought into the house they always wanted by adding or remodeling a bath, creating a custom, designer kitchen, renovate or extend, make repairs and more, all with a single loan at attractive first mortgage rates.
It allows them to obtain both a purchase loan and rehabilitation financing in the same transaction. Before this loan program, a homeowner had to obtain an initial, temporary loan to purchase the home and a separate rehabilitation home loan to make any necessary repairs. Only after the repairs were complete could the homeowner gain permanent financing for their newly improved home.
203K Loans are not only for repairs and renovations, however. They offer a wide-range of benefits to home buyers, while still only requiring a 3.5% down payment for qualified buyers. For instance, they can be used to update or remodel a home, to refinance or to take care of inspection issues, including structural ones. The client could scrape and rebuild a home. They can also be used in conjunction with first time home buyer programs such as CHFA, CHAC, HUD $100 down, and more.
Other benefits of 203K Loans:
Read More at 203kcontractors.com/faqs.
In addition to the 203K financing, we also offer home improvement financing with the Home Projects® Visa® program offered through Wells Fargo Financial National Bank. This program offers you the benefits of choices from several different payment options. Wells Fargo Financial issues the Home Projects® Visa® Card and extends credit under the Home Projects® Visa® Credit Card utilizing an unsecured line of credit up to $25,000 based on your credit score.
Home Projects® Visa® program is an easy and convenient way to pay for your home projects purchases. Plus, as a Home Projects® Visa® cardholder you can enjoy exclusive special benefits throughout the year, such as:
There are many Lenders that offer these products as well as conventional renovation loan programs. But just because they offer them doesn’t mean they are proficient in closing them! We have many great lender resources, as well as, in-house expertise that understand these loan products extremely well and can provide counsel on what will work best for you.