Instead of purchasing a new home, you may want to renovate your current home. Not only do improvements make a home more comfortable to live in, but upgrades may attract prospective buyers when it's time to sell the home. However, home improvements can be expensive and require upfront cash.
One option is to get an FHA 203k Home Improvement Loan. It's a specialized renovation or construction loan backed by the Federal Housing Administration that combines a traditional "home improvement" loan with a standard FHA mortgage. The loan allows the borrower to refinance a current mortgage for more than it's worth and to use the difference on home improvement projects.
Several projects can be financed with a home improvement loan including:
- Roofs, Gutters and Downspouts
- Interior and Exterior Painting
- Minor Kitchen and Bath Remodels
- New Windows and Doors
- Energy Efficient Improvements
- Removal of Lead-Based Paint
- Decks, Patios and Porches
- Landscape Improvements
- Basement Waterproofing
- Washer and Dryer Upgrades
To learn more about home improvement loans, you can use the refinance mortgage calculator, or speak to an experienced mortgage specialist.