Peak Home Loans: Home Improvement Loans 203(k)

A home improvement loan is money lent to a property owner for home repairs, updates or remodeling.? Home improvement loans are not necessarily secured by the property they are intended for and may simply be classified as home improvement loans by the lender.? These loans can be secured or unsecured and are usually short term.

Home improvement loans are intended to increase the value of your home so it is important to think carefully about where best to put the money.? After all, the money spent on home improvements is added to your overall cost of the home and you want to be able to recoup this cost if and when you decide to sell.

Things to consider about home improvement loans:

1. Are you over-building for the neighborhood?? Adding a huge addition could make your house the nicest on the block but also the largest and most expensive, making it potentially harder to sell.
2. How much equity is available for home improvements and what is your maximum budget?? If you paid only $50,000 for your home ten years ago and now similar homes on your block are selling for $120,000, then you will have no problem investing in updates and repairs
3. Are you getting the most for your money?? Research has proven that upgrades to kitchens, baths and curb appeal offer an excellent return on your investment. Make sure you spend the money where it counts.

Ideas for home improvement loan project: The improvement possibilities for your home improvement loan are almost impossible to calculate.? While there are many decorating and design improvements possible, here are a few that are good to consider.

1. Additions - If you have a 2 bedroom, 2 bath house, consider adding a third bedroom. Similarly, if you have a 3 bedroom, 1 bath house, consider adding a second bathroom. And last but not lease, if you have a 2 bedroom, 1 bath house, consider adding a master suite complete with his and her closets and a full bathroom.
2. Updates - Concentrate on bathrooms and kitchens when spending the money from your home improvement loan. Kitchens and bathrooms seem to get outdated so quickly so it is important to use classic design concepts and soft, neutral colors. The lime green bathtub was a hit in 1975 but now desperately needs to be replaced.
3. Curb Appeal - Basic improvements such as landscaping or exterior painting can make a huge difference in the overall perception and value of your home. Keep these projects in mind when setting the budget for your home improvement loan project.

While the goal of your home improvement loan is to make repairs or upgrades to your home, the challenge is to make that money go even further, raising the value of your home above and beyond the level of money spent.

Funds for Handyman-Specials and Fixer-Uppers The purchase of a house that needs repair is often a catch-22 situation, because the bank won't lend the money to buy the house until the repairs are complete, and the repairs can't be done until the house has been purchased.? The problem is solved by HUD:

203(k) HUD Rehab Mortgage InsuranceSummary:
Section 203(k) insurance enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.

Purpose: 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. They also protect the lender by allowing them to have the loan insured even before the condition and value of the property may offer adequate security.

For less extensive repairs/improvements, see Streamlined 203(k). For housing rehabilitation activities that do not also require buying or refinancing the property, borrowers may also consider HUD'sTitle I Home Improvement Loan program. Deceptive Home Improvement Contractors Complaints

HUD insures loans to help people renovate and repair their homes through programs called Title 1 and 203(k). ?Some deceptive contractors in the program were performing shoddy work, falsifying documents, and overcharging homeowners. This fraud had victimized thousands of families and cost the taxpayers millions of dollars.

To avoid becoming a victim of fraud, work only with a HUD-approved Title 1 or 203(k) lender. This allows you to select the contractor and helps to prevent inflated estimates that only increase costs.

To report any fraud or abuse in the Title 1 or 203(k) Program, call toll-free (800) CALL-FHA or (800) 225-5342 or TTY (800) 877-8339.

Thank you,
Robert Pinzhoffer
Kindly visit?Peak Home Loans, we can help with?Home Mortgages

cloudy with a chance of meatballs the hobbit movie hanukkah gpa calculator menorah chanukah chanukah