Many homebuyers do not realize that there are loans that can help pay for your housing renovations and upgrades. If you want a mortgage in Plantation to modernize your kitchen or fix your roof, there are loan programs to help.
Let Ace Mortgage Loan Corp find a mortgage in Plantation for your fixer upper
Just because the home you buy is not your ultimate dream house, doesn’t mean you can’t make it into the HGTV-inspired palace you’ve always wanted. Here are three mortgages that include cash for home renovations, thanks to the federal government.
Fannie Mae’s HomeStyle Renovation loan, allows borrowers to either refinance their existing home loan to pay for improvements or buy a place that needs repairs. Any renovation or repair is eligible for the loan, but it must be completed within 12 months of the mortgage closing. This loan is available from any Fannie Mae-approved lender, but there are qualification requirements:
- For a primary residence, you must have a credit score of at least 620.
- You must make a down payment of at least five percent of the home’s purchase price.
- A certified contractor must prepare and submit a cost estimate and details of the work to be done.
The Federal Housing Administration offers a home renovation loan called a 203(k). There’s typically a lower credit-score requirement for this loan than there is for a HomeStyle loan and a more moderate minimum down payment of 3.5 percent.
There are two kinds of FHA 203(k) loans:
A limited FHA 203(k) loan is designed for cosmetic improvements and is limited to $35,000. The contractor—must be approved by the FHA and perform all of the work.
A full FHA 203(k) loan is used for extensive remodeling, but it requires you to hire a qualified 203(k) consultant to oversee every step of the work, from the plans to the finished product. The FHA-approved contractor must give the green light to all of the project details, including the costs of labor and supplies. The contractor must begin work on the project within a month of the closing and finish the project within six months of starting.
If you need help making sense of the different loans used for home renovations, let the experts at Ace Mortgage Loan Corp help. We can find a mortgage in Plantation to turn your house into the home you’ve always wanted! Call us today!