Fixer-Upper? Apply For a Home Improvement Loan
>FHASo you've bought a "fixer-upper" and are looking to get started on some minor home improvements, but you didn't realize that 35% of remodels include the entire home. Or maybe you've lived in a house for 12 years and you're just trying to increase the value of your home. The first step is figuring out how to finance your project. Consider locating an institution that can provide you with a home improvement loan.
A home improvement loan is a great way to finance your rehab project without having to use credit cards or come up with cash up front. The program offers the ability to (re)finance with a single mortgage rather than applying for several loans. This means a buyer can include the purchase or refinance of a home as well as the costs of repairs and improvements bundled all in the same mortgage loan. Qualifying for a home improvement loan is based upon the ability of the buyer to meet all criteria set by the Department of Housing and Urban Development. If you're interested in a home improvement loan you will need to find a qualified lender to begin the loan process. Once satisfied, buyers need to begin repairs within 30 days and must finish the job within six months of the loan closing date.
The home improvement loan also dictates what types of repairs and/or improvements you can make. Here are some things you can use a home improvement loan for.
- Fixing or replacing wells and septic systems
- Replacing plumbing, AC, heating, and electric
- New Roofing
- Siding and gutters
- Handicap accessible features
- Removal of in-ground pool
- Improvements to energy conservation
- Fences and walkways
- Modernizing or removing obsolescent features
- Adding smoke detectors
- Removing lead-based paint
- Removal of safety hazards
- Connecting to public water or sewage
- Decks, patios, and porches
There are many more improvements that the qualify under the home improvement loan. If you are tackling your next project or simply want to do some repairs, contact a local mortgage company to find out rates and whether or not a home improvement loan is right for you.
You can also look at personal loans or an FHA loan if you don't qualify for the home improvement loan.