Using Your Equity to Afford Remodeling
How can I afford my Renovation? Can I finance my project? What will my house be worth after this remodel? These are questions that all homeowner’s consider when they are planning their project. The fear of affording and paying for a renovation has stopped many people from moving forward over the last few years.
In addition to cash/check, credit card, or Almar’s financing program. We here Almar Building & Remodeling (Hanover, Ma) have recently had some clients working with local lenders to obtain a 203K loan. According to the U.S. Department of Housing and Urban Development’s website, “The Section 203(k) program is the Department’s primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities.”[i]So what are some of the Features and Benefits of a 203K loan?[ii]
* Can be used for purchase and refinance.
* Property appraisals are based on the after improvement values.
* FHA will allow up to 110% of the after improved value.
* Available under the FHA or FNMA guidelines.
* Min 3.5% down for FHA, Min 5.0% down for FNMA
* Septic work can be included without town approved plans.
* Renovation work starts after closing.
* Up to six months construction phase allowed.
* Fixed Rates in the 3% range.
So if you need an addition for the expanding family, Kitchen, Bathroom, Replacement Windows and Doors, Roofing or Siding project consider a 203K loan to help pay for your renovation. For more information about a 203k loan option for your renovation please give Almar Building a call, we will be happy to help walk you thru the process with your lender.