With interest rates so low Home Remodeling or Home Improvement loans are becoming very popular again. You have owned your home in the St. Louis and/or St. Charles Mo area for a long time, a short time or some where in-between and you are considering making improvements to the home. You have many choices available to you as to how to pay for this expense, you can use your own savings, put it on a credit card, use your contractor's financing, get a home equity line of credit, or you can refinance your current mortgage and receive the money to fix up your home.
There are a few mortgage programs available to home owners in the area that will allow you to use the FUTURE VALUE of your home to refinance the cost of your home remodeling and home improvements. The number one home remodeling or home improvement loan I use here in the St. Louis Mo area is the FHA 203k Renovation mortgage.
Every month I close several FHA 203k refinances providing the money to home owners to make improvements to their homes that wasn't available to them before they spoke with me. Imagine, a new kitchen, a new roof, updating your appliances, new flooring, a room addition, how about an entire second floor addition. take your existing basement and turn it into something special. Just about anything you can imagine can be done with through refinancing your home remodeling or improvement through an FHA 203k Refinance.
I DON'T HAVE EQUITY IN MY HOUSE!
Yes, I have heard that before, I can't refinance because I don't have enough equity in my home. With the FHA 203k refinance the value of your home will be determined from the "after completion value" determined by the appraiser. What we do is provide the appraiser with a complete work write up of the home improvements you will be making and the value the appraiser will assign is taking into account the work you will have done after the loan closes. What works even more in your favor is that you can borrow up to 110% of the 'improved' after completion value!
WHAT ARE THE QUALIFICATIONS FOR THE FHA 203K?
Here are some of the basic qualification guidelines for a home remodeling refinance using the FHA 203k home loan. Of course you must own your own home, primary residences only, The total loan amount cannot exceed the FHA loan limits of your area, here in the St. Louis and St. Charles Mo area the FHA loan limit is $281,250.00. Your debt to income ratio cannot exceed 50% and I am looking for a minimum middle credit score of 640 from all borrowers.
WHY ARE SO MANY HOME OWNERS REFINANCING WITH THE FHA 203K?
If you can imagine it more than likely you can do it with the FHA 203k home loan program. Keep in mind this is a first mortgage program, so we will have to refinance your current mortgage. But, with interest rates currently so low many home owners are finding out that they can lowering their mortgage interest rate and make the wanted improvements to their home. Now that is a true Win - Win victory.
What is it that you are imagining that you would use a home remodeling improvement loan for? There are restrictions as to what you can do with the FHA 203k, basically no 'luxury' items. So no new swimming pools, but you can get funds to repair an existing in-ground swimming pool. Just about anything else I can help you get the financing for, use this home improvement refinance so you can keep your money in your pocket. Use a home remodeling refinance so your don't finance the costs on your much higher interest rate credit card. No Equity to Home Equity Line of Credit, but no problem with the FHA Renovation mortgage.
TOO GOOD TO BE TRUE!
I have heard that many times before, this refinance program is too good to be true. Well I have been utilizing the FHA 203k refinance program since I became a loan officer in 1995, and the program has been around longer than that. If you would like to know more about the FHA 203k mortgage and what it can do for you please visit FHA 203k Renovation loans at my website, www.bobrutledge.com. THere you can read a little more but also I email you my Guide to the FHA 203k.
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