Home Improvement Needs :: FHA Home Improvement Loan
FHA Home Improvement Loan:
All You Need to Know About An FHA Home Improvement Loan
Everyone has heard of the FHA loan to purchase a home, but many people do not know you can also apply for an FHA home improvement loan. It works primarily the same way. The government guarantees the loan made by the lender. The loan is insured for up to ninety percent against defaulting on payments.
What Can FHA Home Improvement Loans be Used For?
Someone who qualifies for the FHA home improvement loan can use the money for making all the home improvements he or she needs. In other words, if you lived in a multi-family residence you can use the money to bring the other units up to code so the property could start producing an income. $12,000 is the maximum amount for each unit, up to $60,000, for the improvement loan. For a single family home the most you could borrow would be $25,000. You can also use the money to build something like a garage or other non-residential type structure.
How to Get An FHA Home Improvement Loan
If you are trying to get the FHA home improvement loan you would have to deal directly with the lenders who have been approved for the program. You can find a list of the qualified lenders through your local HUD office, or call your local lender and ask about the program.
Eligibility is slightly different than most loans. The property owners are able to obtain the FHA home improvement loan. So is someone who is buying the property on a land contract would also be able to apply. It is interesting to note that if someone is leasing the property they can also apply for the FHA home improvement loan as long as their lease goes past 6 months after the date the loan is to be paid back.
The FHA home improvement loan can be used to fund any home improvements that will protect or help to improve the living conditions of the home. This can also include manufactured homes. Among the structures covered under the loan are single-family and multi-family homes. Non residential structures like garages and so forth can also be included. The loan can be used to help restore or preserve an historical home. Fire safety equipment can also be purchased with the FHA home improvement loan.
If you are buying a home on land contract and waiting to make renovations because lenders are not allowing you to borrow on the property, this may be just what you needed. You can make the improvements or repairs with the FHA home improvement loan. You will just need to find the lenders who are qualified for Title I financing.
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