Day 9 of 30 Days & 30 Ways to Give Your Home Some Love – Jump-Start Your Home Remodel with Equity Prime Mortgage
By My Home Improvement staffer: Wyndi Kappes
One of the most crucial steps along your home improvement journey is deciding what your budget will be and how you’re planning to pay for your project. Equity Prime Mortgage answers five common questions about the Federal Housing Authority 203(k) Rehabilitation Loan and its value to homeowners looking to remodel.
1) What is a FHA 203(k) loan?
In short, a FHA 203(k) loan allows you to wrap your renovation costs into your mortgage with one loan and one closing. Already own a home? You can refinance and bundle these costs together. The amount you borrow is a combination of the price of the home and the estimated price of the repairs, including labor and materials.
2) How can a FHA 203(k) loan help me?
The combination of these loans allows you to get the finances you need for your remodel right away, instead of paying out of pocket. Also with this loan, your appraiser will take into consideration the future value of your home after your remodel, not just the current value. This allows you to get a loan that covers more of what you need.
3) What does a FHA 203(k) loan cover?
Expect coverage for full kitchen and bath remodels, deck additions, major landscaping, and the addition of a second story. This loan can cover just about any renovation you may need. A 203(k) Streamline can cover costs up to $35,000 and a 203(k) Full can cover almost anything over $35,000.
4) Can I do the work myself?
“While renovation projects can be done by the homeowner, complications and permitting costs can add up quickly,” says Eddy Perez, CEO of Equity Prime Mortgage. “Contracting out the work to a professional is the best way to ensure safety and efficiency.
5) Who is a good candidate for a FHA 203(k) loan?
FHA 203(k) loans can be a great opportunity for someone who doesn’t mind a bit of a fixer upper and meets the qualifications. Eddy explained that this type of loan is rather popular with millennials who want to live close to the city but need to rehab older homes. In fact, this loan may be easier to qualify for than a conventional loan because it is a FHA loan geared toward the underserved. So, individuals with lower credit scores can still be considered.
To learn more about a FHA 203(k) loan, contact Equity Prime Mortgage at
877.255.3554 or visit EquityPrime.com. Knowledgeable about the industry, the Equity Prime customer service team will make sure your family and your home is taken care of.