Lake Minnetonka home improvement loans are nothing new. Every year about this time, one of the resolutions a lot of homeowners make is to do something new with their home. Maybe even to buy a new or bigger home in the coming year.
In either case, many homeowners have made it their New Year’s Resolution to do something, and getting Lake Minnetonka home improvement loans often factor into the resolution.
Here, we want to tell you about a financing alternative that is available, which allows homebuyers or homeowners to obtain Lake Minnetonka home improvement loans and have the available additional cash to make the repairs/improvements. This financing option is an FHA 203(k) “Home Improvement” loan.
There are two basic types of FHA 203(k) “Rehabilitation” loans that provide the best benefit to borrowers:
FHA 203(k) Standard: The Federal Housing Administration (FHA) 203(k) mortgage insurance program allows borrowers to purchase or refinance their home and include the cost to renovate it in the same loan. The Standard 203(k) enables borrowers to make a wide range of improvements including structural changes and additions to the building footprint.
FHA 203(k) Streamline: Flexible credit qualifying permits homebuyers to finance up to an additional $35,000 into their mortgage without staged draws to improve or upgrade their home before move-in as part of a purchase or as part of a refinance. With a 203k Home Improvement “Streamline” loan, borrowers can tap into cash to pay for property repairs, improvements and to complete minor non-structural repairs.
The process of renovating a Lake Minnetonka area home begins long before contractors show up and start framing, dry walling, and painting. It’s important to make sure you, as the borrower of one of these Lake Minnetonka home improvement loans, understand the process and be sure you are working with a responsible lender. It’s also important when purchasing a property to be working with a real estate agent who is knowledgeable about this type of transaction. Contact us for more information on these two types of Lake Minnetonka home improvement loans.
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