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Loans
For Home Improvements
 Introduction
FHA
Title 1
Home
Equity Credit Lines
Second
Mortgage Home Improvement Loan
Combo-
Debt Consolidation (or Cash Out) and Home Improvement
Introduction
Just when you
thought you liked the way the your home looks, you want to make a change.
It's human nature!
How about
changing your tired-looking kitchen into a chef's dream? Did you know that
other than the bedroom, folks spend the most time in the kitchen area?
Did you know
that remodeling a kitchen could increase the value of your home by more than
what you spent? It's true. Dollar for dollar, kitchen and bathroom
remodeling have the highest return on investment. The lowest, you ask? Pools
and landscaping are at the bottom.
Home improvement
could also include sprucing up the exterior and interior paint. Repairing
the roof, putting in a new wooden floor, carpeting, or tile.
Benefits:
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Typically,
mortgage interest on home improvement loans are tax deductible (consult
with your tax advisor for more details).
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Payments are
spread over 10, 15, 20 or 25 years, making payments affordable.
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In many cases,
NO EQUITY is required to apply for a home improvement loan.
FHA
Property Improvement Loan Insurance (Title 1)
The Federal Housing Administration
(FHA) makes it easier for consumers to obtain affordable home improvement
loans by insuring loans made by private lenders to improve properties that
meet certain requirements. This is one of HUD's most frequently used loan
insurance products. By the end of fiscal year (FY) 1996, it had insured
almost 35 million loans totaling $43.6 billion.
The Title I program insures loans to
finance the light or moderate rehabilitation of properties, as well as the
construction of non-residential buildings on the property. This program may
be used to insure such loans for up to 20 years on either single- or
multi-family properties. The maximum loan amount is $25,000 for improving a
single-family home or for improving or building a non-residential structure.
For improving a multi-family
structure, the maximum loan amount is $12,000 per family unit, not to exceed
a total of $60,000 for the structure. These are fixed rate loans, for which
lenders charge interest at market rates. The interest rates are not
subsidized by HUD, although some communities participate in local housing
rehabilitation programs that provide reduced rate property improvement loans
through Title I lenders.
Only lenders approved by HUD
specifically for this program can make loans covered by Title I insurance.
While most lenders and contractors use this program responsibly, HUD urges
consumers to use caution in choosing and supervising home repair contractors
conducting Title I repair/renovation work. A recent HUD review of Title I
uncovered many instances of "unscrupulous contractors performing shoddy
work, falsifying documents, overcharging homeowners, and using deceptive
advertising." HUD encourages homeowners to work directly with their
lender in selecting a home repair contractor in order to prevent inflated
estimates.
Home
Equity Credit lines
If you need to
borrow money, home equity lines may be one useful source of credit.
Initially at least, they may provide you with large amounts of cash at
relatively low interest rates and they may provide you with certain tax
advantages unavailable with other kinds of loans. (Check with your tax
advisor for details.)
At the same
time, home equity lines of credit require you to use your home as collateral
for the loan. This may put your home at risk if you are late or cannot make
your monthly payments. Those loans with a large final (balloon) payment may
lead you to borrow more money to pay off this debt, or they may put your
home in jeopardy if you cannot qualify for refinancing. If you sell your
home, most plans require you to pay off your credit line at that time. In
addition, because home equity loans give you relatively easy access to cash,
you might find you borrow money more freely.
Home
Improvement Loans
You can borrow
up to125% of the value of your home. Get those much needed improvements done
to your home with one low payment. Anything from room additions to
landscaping, or even build the pool you always wanted. A home improvement
loan can turn your dreams a fast reality. with our special Home Improvement
loan program you can accomplish this without any equity.
Combo
Loans Consolidate Debt & Home Improvements
A
combo loan is available for those wanting to consolidate their debt and do
some home improvements and perhaps some cash in your pocket. The Idea of
this new second mortgage makes this the ideal loan for a homeowner who wants
to save money while improving Their home and it's value This loan is
available with or without equity.
Click on the button below
to APPLY TODAY without obligation and
a
loan officer will review your information and discuss your
options with you!
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