When most homeowners want more space or a nicer place they call Real Estate Agent and start their search for a new home. It doesn't have to be that way though, you don't have to move out to move up!
Recently homeowners wanting new digs have found the going a bit tougher.
Both Fannie Mae and FHA have instituted restrictive new rules aimed at
homeowners looking to buy a new place and rent out their current
residence until market conditions improve. For both you now must have
significant equity, 25% and 30% respectively, to use the rental income
on your current residence to qualify. That means that many people now
have to qualify for TWO mortgage payments. Obviously, that simply isn't
possible for many homeowners. All is not lost for those wanting a bigger
space though, they just need to look a little closer to home.
Both FHA 203K and Fannie Mae Homestyle Renovation Loans allow homeowners
to refinance and renovate their current residence. They allow it all
based on the after repair value of the renovations. Only have 10% equity
currently? That is not a problem for FHA 203K or Fannie Mae Homestyle
renovation loans, they are only concerned with the equity you will have
when you are finished with your renovations! So, how can you use FHA
203K or a Fannie Mae Homestyle?
New Freestanding Appliances, Complete Bathroom Remodel, Adding a New
Master Bathroom, Upgrading Heating & Cooling Systems, New Siding,
Fresh Paint Inside or Out, Attic Build-Outs, Finishing the Basement,
Making the House Handicapped Accessible, Complete & Total
Renovation, Adding a 2nd Floor, Adding a New Master Bedroom, New Deck
& Outdoor Kitchen Area, Upgrading Doors and Windows, New Hardwood
Flooring or New Carpet, New Lighting, Upgrading Plumbing &
Electrical System, New Fixtures for Bathrooms and Kitchens, Opening Up a
Floorplan, New Kitchen Counters, Vaulting Your Ceiling, Going Green
with Solar Panels, and Building a New Garage to name a few!
There are hundreds of ways these loans can help you create the house you
want without having to pack and unpack a moving truck. You can even add
those green and energy efficient improvements you have wanted while you
are creating your new space. With a tough market to sell you should
always consider all your options when looking to move up. FHA 203K
Renovation Loans can allow you to explore an angle you might not have
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