If you’re buying a “fixer-upper,” you could qualify for a home remodeling loan. But what is a home remodeling loan, and how do you get one?
What is a Home Remodeling Loan?
A home remodeling loan – also known as a home improvement loan – is one that allows you to borrow money to buy a home and make improvements on it at the same time.
The most commonly used home remodeling loan is a 203k loan, which is backed by the Federal Housing Administration. That’s because when the FHA backs a loan, it guarantees a portion of it – and that means the lender takes on less risk. In many cases, that means it’s easier for a borrower to be approved.
When you find a home that’s in a great location, and that has plenty of potential, you may be able to apply for a 203k loan.
Typically, your project has to be completed within 6 months if you use an FHA home improvement loan. The catch: investors can’t use these types of loans. They’re only available to owner/occupants and nonprofit organizations.
Are You Selling or Buying a Home for Sale in Lake City?
If you’re selling a home in Lake City, we’re the local experts. We know how to market your home aggressively and bring in qualified buyers, and we’d love to help you sell quickly and at the right price.
If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.
In the meantime, check out the most popular Lake City home searches by exploring the links below.
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