203k Renovations Loans
Atlanta Area Realtors and Mortgage Company’s, Summit Design Build, is an expert at working with banks and lenders doing 203k renovation projects.
There are three types of 203k loans:
203k is a FHA rehabilitation mortgage loan. With this loan, a borrower can purchase or refinance a home and include additional money for repairs or renovations. This loan can be used for roof replacements, room additions, upgrade central heat/air, energy efficient improvements such as windows insulation or weatherproofing, Bath and kitchen remodels, carpet and paint and landscaping. This loan is available to single family residents, 2-4 units and mixed use (commercial and residential in one building). This is the perfect solution for handyman specials, or foreclosed properties. The loan closes before any of the repairs begin. Only one closing, with money dispersed in draws to the contractor after closing. The 203k loan amount can go as high as 110% of the after improved Value. You have up to 6 months to complete renovations and the buyer can finance up to 6 months of payments.
The Perks and Benefits
Get funding for home repairs. Make optional improvements, like tearing out smelly carpet or giving your kitchen a total facelift. And above all, design a home that’s simply more comfortable. These are just a few benefits of 203k and HomePath Renovation loans. But there’s a few more attractive perks. Things that most homeowners haven’t discovered yet. Let us explain.
Generous Loan Amounts
No matter which program you select, loan amounts are generous. For a 203k full loan, you can qualify for up to 110 percent of the after-improved value. And for the streamlined 203k loan program, financing of up to $35,000 is available.
The options are endless.
The HomePath Renovation loan offers generous loan amounts, too. The program has a maximum loan amount of $417,000. And renovation costs can be 35 percent of the completed-home value OR $35,000 – whichever is less.
Single Loan, Single Payment…
Normally, a home owner might take out a home equity loan to finance home repairs or renovations. But here’s the problem. You have two payments. Two sets of closing costs. And ultimately, you pay more.
A 203k loan or HomePath Renovation loan streamlines your loan. You have just one loan. And one monthly payment. Plus, get funding for optional construction projects. Things your home doesn’t “need” but you’d like. Like replacing flooring or a kitchen remodel.
And here’s another perk.
If you want to buy a foreclosed home…that needs a little work – a 203k loan is the perfect option. It allows you to secure a home at an excellent price and customize it to your preferences.
Ready to set up a no-cost consultation to discuss your project? If so, we’re ready to help! Simply call (404) 919-9908 or email us at info(at)summitdesignbuild.net today.
For more information, visit the HUD website