Yes. There are a variety of different loans available when looking for a mortgage that helps pay for home renovations. From loans dedicated to helping the home buyer put in a pool, to loans that assist in repairing weather damage, there are several options available to home buyers who are interested in renovating or repairing a new home. One of the most common home renovation loans is an FHA 203(k).
An FHA 203(k) is a loan program provided for by the Federal Housing Administration.
This type of loan allows homebuyers to purchase a home with the cost of specific repairs included in the mortgage amount. These loans are primarily directed toward first time home buyers, but there are several qualifications that determine if you are eligible for one of these home renovation loans.
The borrower must be able to prove that money was spent on renovating the house. An eligible credit score must also be proven, but fortunately enough for homebuyers looking to take out this type of loan, the minimum credit score is easier to obtain than other loans. If you have around a 640 credit score, you could qualify to receive an FHA 203(k).
Before applying to receive a home renovation loan, decide as best you can how much money you will need to begin your home renovation. If you hire a contractor, ask them to give you an estimate on the total cost of the home repairs. Once you have that specific number, discuss the possibility of a home renovation loan with a mortgage broker. Different loans offer different amounts to borrowers, so talking to a mortgage broker can help determine the specific loan and amount that fits your project’s goals.
For any further questions about the types of home renovation loans we offer or if you qualify for an FHA 203(k) loan, Contact LoanLeaders of America, Inc.
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