FHA 203(k) loans are available to eligible home buyers who want to purchase a house and get funds to renovate it. However, many buyers confuse these loans with an FHA home improvement loan from Ponte Vedra Beach, used exclusively to remodel the home. Consulting with a lender helps determine if you are eligible for a home improvement loan and what you can use these loans to achieve.
How to Qualify for the Home Improvement Loan
You must live in the home for no less than 90 days before applying for an FHA home improvement loan in Ponte Vedra Beach. In addition, the lender verifies your income and how long you’ve been with your current employer. You need a debt-to-income ratio of 45% or lower.
You cannot have any delinquencies on federally guaranteed loans on your credit history. Since FHA loans come from federally-funded programs, any overdue balances can count against you.
Are There Restrictions on the Loans?
Yes, you cannot use any portion of the loan amount for any purpose other than improving the property. You are not required to hire a contractor to complete your renovations. Still, suppose you are required to get inspections for plumbing or electrical installations. In that case, a contractor could help you manage the inspections and get the necessary permits for the project.
What Can You Improve?
You can use the loan to replace plumbing, HVAC, or roofing. The loans are available for replacing appliances installed permanently, like dishwashers or garbage disposals. You could add wheelchair ramps around porches and entryways, and there are options for installing solar panels and energy-efficient appliances.
FHA home improvement loans help you renovate your home and get more out of interior installations. Lenders can tell you more about qualifying for the loans. Contact the Mortgage Lady Team-Fairway Independent Mortgage Corporation to apply for a loan or visit themortgageladyteamfairway.com.
