Special Government Home Renovation Loan Program with FHA 203K Renovation Loans in Castle Pines Colorado.
This article will explain the little-known special government loan program that is part of FHA (Federal Housing Administration- a department within HUD). A buyer or existing home owner can do meaningful amounts of remodeling or updates to their existing home without having a higher cost second lien thanks to this special FHA loan program.
You are not allowed to finance "Luxury items" such as a hot tub or swimming pool through this FHA loan program. You can repaint, remodel cabinetry in kitchens and bathrooms, replace appliances and flooring, add wallpaper, or even add a room to an existing structure (which will increase the value of your home because of more square footage).
There are many advantages with this government loan program but the biggest is the ability to have all of your acquisition or refinance loan costs together with your renovation loan in one low interest rate instead of two separate government loans that are always of higher interest rates. The name of this FHA loan program as defined by the Federal Housing Administration is a 203K loan.
For more information, please visit the FHA website: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou
Lenders have to be approved by HUD in order to do this loan program. It is essential that you go with a lender that can offer in house underwriting and expertise instead of using a mortgage broker due to the intricacies of the loan program. Using a broker can cause unnecessary delays in the process.
Two types of loan programs within the 203K Renovation Loan for Castle Pines Colorado exist.
The first is what is called a streamline 203K loan. When using a 203K Streamline loan, there can't be any structural improvements and the dollar amount is generally lower (less than $35,000) for a 203K streamline loan. Only basic cosmetic repairs are allowed with a Streamline 203K loan. These are items such as painting, plumbing, electrical, and flooring.
A Full 203K loan is the second type of a 203K loan. With a Full 203K loan you can do structural improvements like adding another room or doing foundation work as well as the ability for the home owner to rehab or renovate their current property. It's now possible to envision new carpeting, paint, a remodeled kitchen or bathrooms and lighting when looking for your new home and have the home of your dreams, which will give you much more flexibility in your home purchase or to remodel your existing home.
For more information on renovation or rehabilitation of your home using a FHA 203K Renovation Loan for Castle Pines Colorado or surrounding areas please contact RJ Baxter, Senior Mortgage Banker at 303-670-0137 or log on to http://www.cohomesandloans.com and request more information.
RJ does loans all over the state of Colorado.
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