Making home improvements will get you the most in a buyer’s market, or it will extend the economic life of your home.
The question is how to pay for it? There are conventional loans, but you need 65 percent equity for a second mortgage, or strong enough credit, income and savings to refinance. But make sure to refinance enough to pay the fees and the remodeling cost. What’s good right now is that interest rates are low so you can come out ahead by lowering your monthly payments.
There are 203(k) and 203(k) streamline created to make home improvements easier.
The streamline 203(k) is for less extensive improvements that do not require buying or refinancing the property and offers up to $35,000.
203(k) is a solution that helps both the borrower and lender, insuring a single, long term, fixed or adjustable rate for the purchase and upgrade. Section 203(k) saves borrowers time and money.
203(k), even during recession, have risen and lenders are willing to make them. In 2007 there were 3,255 203(k) loans, 2008 – 6,562, and in 2009 – 16,655. The reason is they insure the mortgage for purchase or refinancing and improvement. The loan pays the seller, or, pays off the existing mortgage. The remaining funds are put in escrow for improvement completion. It must be at least $5,000, but the total value must still fall within the FHA mortgage limit. The value of the property is determined by either the value of the property before improvement plus its cost, or 110 percent of the appraised property value after improvement. The streamline does not require refinancing.
It covers: Structural alterations and reconstruction to the home’s function, elimination of health and safety hazards, improving appearance like new paint, plumbing, wells or septic system, roofing, gutters, and downspouts, floors or floor treatments, landscape and site improvements, access for disabled person(s), and energy conservation such as window replacements.
Just SCV’s Best is the team for your home improvements needs! They have over 300 years of combined experience serving Santa Clarita. They are committed to you and to each other, which provides a double guarantee, along with delivering the highest quality and service available. Call the companies you can trust and get your projects started today!
For more information, visit our web site at www.justscvsbest.com or see our home improvement guide in the back glossy pages.