Buy a new home or upgrade your existing one? It’s an age-old question among homeowners; one that’s influenced by the economy and the housing market. Lately, homeowners have opted to upgrade.
In 2011, more than $115 billion was spent on home upgrades nationwide.
Unfortunately, financing home construction is not as easy as it was 5 years ago. Few banks grant construction loans anymore and home equity lines of credit offer just limited-size credit lines — especially for a purchase. You can pay cash for your improvements, or you can seek a 203k loan via the FHA.
The FHA 203k program is an all-in-one mortgage program for home construction projects. It combines the mortgaged amount with your estimated home repair costs, and bundles them into one. FHA 203k loans make it possible to make home repairs after getting a mortgage. Typical mortgages required repairs to be made prior to getting financed.
FHA 203k loans are especially useful for people buying foreclosed, abandoned, or otherwise run-down homes. There’s no need to finance repairs with cash. The 203k loan provides all the cash’s that needed.
Read more about eligibility here: http://themortgagereports.com/9800/fha-203k-mortgage-a-construction-loan-from-the-fha