Let’s face it, not everyone can or wants to pay cash for their next home. While we see a LOT of cash sales in our market, many people want or need to finance a home using “traditional” financing methods. Most people consult home loans calculator first before getting a home equity loan because they find it very helpful. Traditional financing methods are typically FHA, VA mortgage loans and Conventional loans with down payments ranging from “zero” to 20%. Keep on reading to learn all the steps to buying a house.
A lot of home buyers have money for a down payment but might need some assistance with closing costs that include things like mortgage fees, pre-paid taxes and insurance, title fees, etc. If they do have the money for their down payment and maybe even their closing costs, there might not be a lot left for any type of home renovation needs. ie: new kitchen, updated bathrooms, new swimming pool, super-cool BBQ, raising the ceiling, adding a room, expanding the garage, or getting the local gutter repair team do some work or install seamless gutters, to contact them you just have to visit the link.
Are you looking for a professional team who can transform your property into a show house environment and work within your budget, at https://www.capitalconstruction.ie/ you will find high quality renovations that will add equity value to your property.
Part of the challenge some home buyers have is finding the perfect home in the perfect location. While newer and more modern building practices in certain areas might offer things like 3 car garages, vaulted ceilings, open kitchens and larger living spaces, many of the homes built in some parts of town have a very limited supply of properties with those features. Areas like south Scottsdale, Tempe and central Phoenix have an abundance of properties built from the 40’s to the 70’s that are often looked at as being “outdated” by some home buyers. Some are in need of very basic maintenance, like septic tank pumping, in order to be fully livable. Others require larger overhauls.
It is common for a buyer to choose to purchase a home in an area where updating is not necessary, simply because they do not have the funds to work on an older home in a more convenient location. This is where home renovation loans can be very helpful and for that we recommend this residential Plumber in Fort Worth, Texas.
Home Renovation Loans Come In Different Shapes And Sizes:
Two popular but ( in my opinion ) underutilized types of home loans are home renovation loans. These are quick loans that you can use when purchasing a property that needs to be updated. Basically, you get one loan that is based on the price of the home and the cost of wanted or needed repairs. This way, the upgrades are put into the loan and financed into your purchase price. You can purchase a property using an FHA 203(k) loan or a Home Makeover Loan which is a conventional product.
From HUD’s web site, we see the types of improvements that borrowers may make using Section 203(k) financing include:
- structural alterations and reconstruction
- modernization and improvements to the home’s function
- elimination of health and safety hazards
- changes that improve appearance and eliminate obsolescence
- reconditioning or replacing plumbing due to a leak repair
- installing a well and/or septic system and doing some septic tank cleaning and septic pumping
- roof inspection ipswich can help you adding or replacing roofing, gutters, and downspouts. For additional roofing options you can get more info on the best roofers in Easley
- adding or replacing vinyl flooring and/or flooring treatments
- major landscape maintenance and work as well as site improvements
- enhancing accessibility for a disabled person
- making energy conservation improvements
The HUD site also talks about what the purpose of this type of loan is:
Section 203(k) fills a unique and important need for homebuyers. When buying a house that needs repair or modernization, homebuyers usually have to follow a complicated and costly process. The interim acquisition and improvement loans often have relatively high interest rates, short repayment terms and a balloon payment. However, Section 203(k) offers a solution that helps both borrowers and lenders, insuring a single, long term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of a property. Section 203(k) insured loans save borrowers time and money.
One of the Conventional options, the Home Makeover Loan, is similar but has some different guidelines. It does allow for higher loan amounts than what the FHA loan limits you to. It also allows for more “luxury items” than FHA loans. ie: pools, landscaping, built-in BBQ, etc. Currently, the loan limit is $417,000 with a minimum of a 5% down payment on a primary residence.
Once someone decides to purchase a home, they should talk to a reputable mortgage professional to see what options are best for their financial situation. Of course, we are happy to refer you to people who are very well qualified to help you.
For a parent who wants to get even more creative, they might want to consider helping their student or child with a combination of a “Kiddie Condo Loan” AND an FHA 203(k) loan. THAT, could be fun! Give me a call to talk about some of these options!