Columbia SC home improvement loans are nothing new. Every year about this time, one of the resolutions a lot of homeowners make is to do something new with their home. Maybe even to buy a new or bigger home in the coming year.
In either case, many homeowners have made it their New Year's Resolution to do something, and getting Columbia SC home improvement loans often factor into the resolution.
Here, we want to tell you about a financing alternative that is available, which allows homebuyers or homeowners to obtain Columbia SC home improvement loans and have the available additional cash to make the repairs/improvements. This financing option is an FHA 203(k) "Home Improvement" loan.
There are two basic types of FHA 203(k) "Rehabilitation" loans that provide the best benefit to borrowers:
FHA 203(k) Standard: The Federal Housing Administration (FHA) 203(k) mortgage insurance program allows borrowers to purchase or refinance their home and include the cost to renovate it in the same loan. The Standard 203(k) enables borrowers to make a wide range of improvements including structural changes and additions to the building footprint.
FHA 203(k) Streamline: Flexible credit qualifying permits homebuyers to finance up to an additional $35,000 into their mortgage without staged draws to improve or upgrade their home before move-in as part of a purchase or as part of a refinance. With a 203k Home Improvement "Streamline" loan, borrowers can tap into cash to pay for property repairs, improvements and to complete minor non-structural repairs.
The process of renovating a Columbia SC area home begins long before contractors show up and start framing, dry walling, and painting. It's important to make sure you, as the borrower of one of these Columbia SC home improvement loans, understand the process and be sure you are working with a responsible lender. It's also important when purchasing a property to be working with a real estate agent who is knowledgeable about this type of transaction. Contact us for more information on these two types of Columbia SC home improvement loans.
To stay on top of Columbia SC area mortgage news and tips, check out our other articles by clicking on the Columbia SC Mortgage Info link to your right under Columbia SC Real Estate Categories.
A second mortgage, the second loan secured against the home, and second in importance to the first, means that should the borrower not be able to pay off the loan in full and the bank or money lender repossessed the home to recoup their losses, the first loan would be paid off first and the money that was over would be used to pay off the other loan.
The second mortgage loan has a higher interest rate than the first one to compensate the lender for the extra risk he has to take. The loan charges will be less as there is already a loan registered in the borrower’s name. It is not difficult to qualify for a second mortgage loan as the loan is secured against the home.
It is always prudent to shop around for lending agencies and banks that have the best interest rates and loan charges.
This loan is usually used for home renovations. Renovating the home periodically is important to keep up the value of the property. Major repairs can cost a lot of money but have to be done. The best way is to borrow the money and get the jobs done. Get quotes from various building companies and building supply companies for the work that needs to be done. When you have the best prices you can apply for a loan for the correct amount you will need to get the job done.
This loan can either be taken in a lump sum or you can open a line of credit and spend the money as you need it. In this instance, the line of credit would work very well as you will be able to pay for labor and material as the phases of the project are completed and the money will be spent for the purpose for which it was borrowed. This line of credit works much like a credit card.
A second mortgage can also be taken on the home to pay for a child’s college education. This loan is usually a large amount of money and a second mortgage would be ideal to pay theses expenses.