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Other Home Improvement Loans

OTHER CHOICES FOR A HOME IMPROVEMENT LOAN (REFINANCE)

For a Rehab Home Purchase Loan there may be only one option available which is the 203(k) Loan.  Potential Refinance options are listed below.

To apply now or to for more info call 888-299-4484 or Click Here.

  1. Home Equity Loan or Second Mortgage – if a homeowner has plenty of equity in their property this might be an option.  These tend to max out at 60% Loan-to-value (LTV).  For example:  if a homeowner owes $100K on a home currently valued at $200K, which would be a 50% Loan-to-Value, then there may be 10% LTV, or $20,000 left to pull out as cash for home improvements.
  2. Cash Out Refinance – similar to a Home Equity Loan or Second Mortgage, if a homeowner has plenty of equity in their property this might be an option.  These tend to max out at 80% Loan-to-value (LTV).  For example:  if a homeowner owes $140K on a home currently valued at $200K, which would be a 70% Loan-to-Value, then there may be 10% LTV, or $20,000 left to pull out as cash for home improvements.
  3. Section 203(k) Loan – sometimes this loan is the only option since it does allow for a Loan-to-value (LTV) of up to 110% of the FUTURE value of the home (the value assuming the improvements have already been completed).  For example a home currently worth $200K might be worth $260K after home improvements, additions, or rehab.  So in this example a 203(k) Loan could allow a loan of up to $286K!!! (or $260K x 110%)

WHICH OPTION IS BEST? Sorry there’s no easy answer!  First you might not qualify for all three.  Second it is best to compare what rate, fees, and payments would apply to your situation to determine which is best for you.

To see which is the best option contact a mortgage professional that is approved to do all three loan choices listed here, including the 203(k) Loan by calling 888-299-4484 or clicking here to apply now.  The mortgage professional should be able to help you estimate the value of your home and then prequalify you over the phone in minutes.

[For an Approved 203(k) Lender click here or call 888-299-4484]