Nail Down The Money to Remodel
If you're one of America's many homebuyers looking for a fixer-upper, recent headlines about8t tighter lending requirements may have left you wondering. Will you find the right mortgage to cover both the purchase and revocations?
Fortunately, there are several options specifically designed to finance remodeling expenses:
FHA Title 1 Loan: A short-term, fixed-rate loan that lets you borrow up to $25,000 for repairs and improvements.
HUD 203(k) Loan: A long-term, fixed-rate loan based on the home's anticipated market value after renovations are complete. Plus, HUD's 203(k) program permits borrowers to purchase an "as is" property and rehabilitate it. Downpayments range from 3 to 5 percent.
Fannie Mae HomeStyle Program: Adjustable or fixed-rate financing with a downpayment as low as 5 percent. A HomeStyle loan can also be used to refinance an existing mortgage for repairs on your current home.
Seller Financing: In today's competitive marketplace, the seller may agree to pay for some or all of the improvements before closing, or they may agree to carry a second loan to fund needed repairs.
Combination Loan: A long-term, fixed-rate loan combined with a short term line of credit that is earmarked for improvements. The credit line may be paid off by refinancing on the higher appraised value of the home.
For more information about these financing programs and other home renovation programs available through your state or municipality, talk with your local lending professional.
For a free consultation to discuss which type of mortgage loan will work best for you, call Victoria Spannaus at Wachovia Mortgage, FSB. at (800) 741-7813 or 910-692-6225.
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