There is a special government loan program that is part of the Federal Housing Administration (FHA)- a department within HUD.
Thanks to this special FHA loan program, a buyer or home owner can do meaningful amounts of remodeling or updates to their new or existing home without the higher cost of a second mortgage. You are not allowed to finance "Luxury items" such as a hot tub or swimming pool through this FHA loan program. Repaint, remodel cabinetry in kitchens and bathrooms, add wallpaper, replace appliances and flooring and even add a room to an existing structure (which will increase the value of the homes square footage).
Many advantages exist with this government loan program but the biggest is the ability to have all of your acquisition or refinance loans together with your improvement loan in one low interest rate instead of two separate governments loans that are always of higher interest rates. A 203K Loan is the name of this FHA loan program 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 that brokered loans in this niche create, 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.
There are two types of loan programs that are part of the 203K Renovation Loan program for Elizabeth Colorado. 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. Items such as painting, plumbing, electrical, and flooring are allowed.
A Full 203K loan is the second type of a 203K loan. A full 203K loan offers structural improvements like adding another room or doing foundation work and you can also do rehab or renovate your 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 Elizabeth O or surrounding areas please contact RJ Baxter, Senior Mortgage Banker at 303-670-0137 or visit our website at http://www.cohomesandloans.com and request more information.
RJ does loans all over the state of Colorado.
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