Special Government Home Renovation Loan Program with FHA 203K Renovation Loans in Dacono Colorado.
There is a special government loan program that is part of the Federal Housing Administration (FHA)- 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.
"Luxury items" like a hot tub and a swimming pool are not allowed by this FHA loan program. Items such as remodeling cabinetry in kitchens and bathrooms, painting, adding wallpaper, replacing appliances and flooring, or even adding a room to an existing structure (which will increase the value of the homes square footage) are allowed.
The biggest advantage with this government loan program is that instead of having two higher interest loans, you can combine your primary mortgage and your rehab costs into one low government loan and interest rate. This FHA loan program is called a 203K loan, as defined by the Federal Housing Administration. 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. To avoid delays, 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. Two types of loan programs within the 203K Renovation Loan for Dacono 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 Dacono Colorado or surrounding areas please contact RJ Baxter, Senior Mortgage Banker at 303-670-0137 or log on tohttp://www.cohomesandloans.com and request more information.
RJ does loans all over the state of Colorado.
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