There are several clever ways for any homeowner to get a loan to do some home improvements that you may not know about. The first option is a government loan from HUD and it's called a 203 (k) loan and it's part of the financing plan financed by the Housing and Community Development program from HUD. So if you already have a HUD loan or want to purchase a home that needs repairs or modification, this is where the money is located. The eligible properties are one to four units that has been completed for at least one year and must fit local zoning requirements. And if it is new construction, the units must be attached to the existing dwelling. This FHA HUD 203 (k) program is the perfect answer to those in need and lenders love these kinds of deals.
Home Equity Loans Are A Good Bet For Home Improvements!
Many homeowners never think about home equity loans when considering home improvements. Actually, these types of loan programs are the easiest to get funded simply because the home owner is already living in the property. Basically, it is a type of second mortgage that will sit behind your first mortgage wherein your current lender will be more liberal to loan you home improvement money since they will have hardly any risk. The two types of these home improvement loans are:
* HELOC - Home equity line of credit.
* HEL - Home equity loan.
Note: If your mortgage is with a bank these loans will many times offer no application or bank fees, possible tax advantages, and good lending rates for the borrower. Your credit doesn't need to be perfect and you can use the money however you wish with a home equity loan.