Within the government’s Housing and Urban Development (HUD) program operates the Federal Housing Administration (FHA), which has the responsibility for administering the government home loan insurance program. The credit qualifying criteria for a borrower are not as strict as conventional loan financing and the down payment or Equity requirements are less which makes them very popular.
Some advantages of an FHA loan include:
- As little as 3.5% down
- 6% seller paid closing cost
- Allows for “Gift” from family for down payment
- First time home buyers welcome!
- No appraisal required in some instances
- No pre-payment penalties
- Easier credit restrictions
- Close in as little as three weeks
Home improvement loans can provide you with the money for improving, repairing, or remodeling your existing home. These loans are often used to maintain or increase the value of your home. It can include repairs, refurbishing of your bathroom, kitchen, property extensions, landscape improvements, swimming pools and many other repairs or renovations.
Now you can transform your home from “rough around the edges” to the “dream to come to” with an FHA 203(k) loan. FHA’s 203(k) program allows you to finance additional money into your mortgage to make those improvements.
The FHA 203(k) program is intended to facilitate uncomplicated renovation and improvements to a home. To be eligible, you must qualify for an FHA loan and your property must meet certain criteria, such as being owner-occupied by completion. The additional funds for renovation remain in an escrow account after closing that you can pull from to make repairs to the property.