FHA 203K Loans
Renovations and remodeling projects can add value and comfort to your home. However, many construction projects require up-front cash for materials and labor. If you’re making significant improvements on your house, such as adding a pool or refinishing your kitchen, you may need some home improvement financing.
With a home improvement loan from New American Funding, your mortgage balance can exceed the home’s purchase price or current appraised value. This allows you to pull out extra cash to pay for the renovations.
Home improvement loans combine a construction loan and a mortgage into one low-rate loan that can fund the entire purchase and renovation project.
FHA 203(k) Home Improvement Loans
For many people, buying distressed or dilapidated homes can be a lucrative investment. However, home repair and renovations can be costly. With an FHA 203(k) Home Improvement Loan, you can have a single fixed-rate mortgage and up to $35,000 cash out for improvements.
The FHA 203(k) Home Improvement Refinance Loan
If you need to refinance your home mortgage, the FHA 203(k) Refinance Loan allows current homeowners the opportunity to rehabilitate and improve their home. Whether it be making a home handicapped-accessible, replacing your roof or upgrading your kitchen, home improvement projects can raise the value of the property and allow you to customize as your needs change. The FHA 203(k) Refinance Loan allows you to cash out up to $35,000 for your home improvement project, and the mortgage balance can exceed the current appraised value of the home. You do not have to have an FHA home loan to qualify for the FHA 203(k) refinance loan.
Types of Projects That Qualify For an FHA Home Improvement Loan
- Removal of lead-based paint
- Decks, patios, porches
- HVAC systems (Heating and air conditioning)
- Landscape improvements
- Basement completion
- Basement waterproofing
- Septic or well systems
- New kitchen appliances
- Washer/Dryer upgrades
- Roofs, gutters and downspouts
- Plumbing and electrical upgrades
- Minor kitchen or bathroom remodel
- Add carpet, tile or wood flooring
- Install new windows or doors
- Weather stripping and insulation upgrades
- Disability improvement
- Energy efficient upgrades
These are just a few of the cost saving and value-adding improvements that you can make to your home with home improvement loans from New American Funding. Talk with a licensed mortgage specialist about your project to see if you qualify for an FHA 203(k) Home Improvement Loan.