Home Improvement

Cash out; Refinance:

You can take cash out to pay debts and or for home improvements, but if you are taking cash out, your loan will be limited to either 95% or 85% of the appraised value, depending on your qualifications.

Also depending on the state which the property is located, the maximum FHA financing will either be 98.75% or 97.75% of the appraised value of the home or the amount you are refinancing plus closing costs; whichever is lower.
203K Loan - Rehab Program Overview:

This program operates through FHA- Approved lending institutions. The 203K loan is a loan that can be used to rehabilitate a distressed property that needs work and would appraise for the purchase price plus the amount of the rehabilitation; once the work would be completed. The combination of the two amounts would be the amount financed in the mortgage.

Streamline 203K Loan

With this program the buyer can finance up to an additional $35,000. into their mortgage to pay for remodeling such as replacing flooring, installing new appliances, and painting the interior and exterior of the home. The advantage of this loan is that you can buy a home that needs a lot of work, but you still have only one mortgage payment, and you can complete the repairs after buying the home.

This FHA 203k loan program is the HUD Department's primary program for rehabilitation and repair of single family properties. This is basically a home improvement loan; this loan is very important for communities and neighborhood's ability to revitalize and to expand homeownership opportunities. This is one of HUD's primary goals. Therefore they strongly support the program and the lenders that participate in it.

How the Program Can Be Used:

• To accomplish rehabilitation or improvement of an existing one-to-four unit dwelling in one of three ways:
• To purchase a dwelling and the land on which the dwelling is located and rehabilitate it.
• To purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and rehabilitate it.
• To refinance existing indebtedness and rehabilitate a dwelling.