Scott Storace - Branch Manager, 100 Pacifica Drive Ste. 140, Irvine CA 92618 NMLS #226339 949.973.0141

"From the minute you call me to the minute we close, I have your back. No hassles, no banker’s hours & quick response times." - Scott Storace

  • Home Loans up to $3,000,000
  • Interest Rate Float Down Option
 

Have Questions? Call 949.973.0141

Renovate Your Home! No Rainy Day Fund Needed

There's No Need to Save a Large Amount of Money to Renovate Your Home with Renovation Loans

There’s No Need to Save a Large Amount of Money to Renovate Your Home with Renovation Loans

Orange County, CA – With market conditions improving, the shoots of economic recovery are bursting through the soil. The hope is that 2013 is going to continue to be a positive year. It’s been a great start, and with property prices on the rise again, it’s one of the best times to look at investing in your home. Since rates are low, many people have decided to renovate their homes. You’ll be surprised what’s available when you review your mortgage options.

The cost to renovate your home can add up quick and many people find it difficult to come up with the cash to pay for it out of their pocket. At the moment a lot of people are looking into the value of FHA 203K home improvement loans. Current homeowners can get their hands on up to $150,000 with an FHA 203K loan, and only need 2.25% equity.

Things are different of course if you’re going to be a new homeowner. But the FHA 203K can still be a great option. You’ll need a low 3.50% down payment, which can be gifted. But for a slight increase in monthly payment you can finance both the repairs and the purchase of the property into one payment. The low down payment allows new homeowners to keep some money set aside for furnishing and decorating their renovated home.

The next question is how to go about getting an FHA 203K loan for yourself. The first step is finding the right property and knowing what type of repairs you’ll need. Once you’ve done this, you will need to meet with an FHA 203K coordinator. This is something that we can help arrange. What is important to note at this stage is that the process for this loan is quite rigid. You can’t just borrow the money and then spend it on whatever you like as you go about doing the house up. An exact plan has to be put into place, taking into account every dollar of that loan you are hoping to get your hands on to renvate your property.

The coordinator will examine the plans for how the work will be completed. You will then be expected to get a quote from a contractor for the cost of the work. The coordinator will then take a look at the bids for the work, and assess what is required. From this point to coordinator will provide a detailed write up of the work to be carried out. This report will also discuss the future value of the property once the work has been completed. This report will be passed on to the lender, who will base the loan on the future value of the renovated property, rather than one based on its current condition.

Although there are a few hoops to jump through, there’s no doubt that this FHA 203K loan can be a great package for the right person. Come and have a chat with me and let’s see if it’s the right renovation loan for you. Ask me about our side-by-side loan comparison presentations. We can put one together specifically for you to see how each program stacks up against the other.

Scott Storace

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