Loans For Home Improvements
How about changing your tired-looking kitchen into a chef's dream? Did you know that other than the bedroom, folks spend the most time in the kitchen area?
Did you know that remodeling a kitchen could increase the value of your home by more than what you spent? It's true. Dollar for dollar, kitchen and bathroom remodeling have the highest return on investment. The lowest, you ask? Pools and landscaping are at the bottom.
Home improvement could also include sprucing up the exterior and interior paint. Repairing the roof, putting in a new wooden floor, carpeting, or tile.
The Federal Housing Administration (FHA) makes it easier for consumers to obtain affordable home improvement loans by insuring loans made by private lenders to improve properties that meet certain requirements. This is one of HUD's most frequently used loan insurance products. By the end of fiscal year (FY) 1996, it had insured almost 35 million loans totaling $43.6 billion.
The Title I program insures loans to finance the light or moderate rehabilitation of properties, as well as the construction of non-residential buildings on the property. This program may be used to insure such loans for up to 20 years on either single- or multi-family properties. The maximum loan amount is $25,000 for improving a single-family home or for improving or building a non-residential structure.
For improving a multi-family structure, the maximum loan amount is $12,000 per family unit, not to exceed a total of $60,000 for the structure. These are fixed rate loans, for which lenders charge interest at market rates. The interest rates are not subsidized by HUD, although some communities participate in local housing rehabilitation programs that provide reduced rate property improvement loans through Title I lenders.
Only lenders approved by HUD specifically for this program can make loans covered by Title I insurance. While most lenders and contractors use this program responsibly, HUD urges consumers to use caution in choosing and supervising home repair contractors conducting Title I repair/renovation work. A recent HUD review of Title I uncovered many instances of "unscrupulous contractors performing shoddy work, falsifying documents, overcharging homeowners, and using deceptive advertising." HUD encourages homeowners to work directly with their lender in selecting a home repair contractor in order to prevent inflated estimates.
If you need to borrow money, home equity lines may be one useful source of credit. Initially at least, they may provide you with large amounts of cash at relatively low interest rates and they may provide you with certain tax advantages unavailable with other kinds of loans. (Check with your tax advisor for details.)
At the same time, home equity lines of credit require you to use your home as collateral for the loan. This may put your home at risk if you are late or cannot make your monthly payments. Those loans with a large final (balloon) payment may lead you to borrow more money to pay off this debt, or they may put your home in jeopardy if you cannot qualify for refinancing. If you sell your home, most plans require you to pay off your credit line at that time. In addition, because home equity loans give you relatively easy access to cash, you might find you borrow money more freely.
You can borrow up to150% of the value of your home. Get those much needed improvements done to your home with one low payment. Anything from room additions to landscaping, or even build the pool you always wanted. A home improvement loan can turn your dreams a fast reality. with our special Home Improvement loan program you can accomplish this without any equity.
A combo loan is available for those wanting to consolidate their debt and do some home improvements and perhaps some cash in your pocket. The Idea of this new second mortgage makes this the ideal loan for a homeowner who wants to save money while improving Their home and it's value This loan is available with or without equity.