"common sense solutions to everyday problems"


Decent and fairly-priced home improvement loans might seem like hard–to-find treasures nowadays. You already have enough funds to finance a house of your own, but the only problem is that most houses sold in the real-estate market currently need home improvement and rehabilitation. The structure of your prospective home might look sturdy, but there are times when realtors somehow intentionally miss some important information about the state of the house. You end up paying a substantial amount of mortgage per month and you have extra expenses for the development of certain parts of your house that needs improvement. When you thought you have at last acquired your dream house, you end up with a house full of upgrade and rehabilitation needs instead. Buying an existing house when you come to think of it, it’s more expensive than buying a brand new property.

There are a ton of government and private entities which provides homeowners the money to start with their home improvement loans. But before you bite into any offers, check with the Federal Housing Administration first. As you know, this government entity provides the most reasonable terms and agreements for varying home improvement loan options. Instead of directly consulting your lending company, which will surely increase your interest rate on your existing mortgage when you plan to do improvement projects on your house structure, save yourself some of your hard-earned money and go to FHA for consultation.
Here are some ways that you can reduce your cash expenses while undergoing these home improvement projects for your house.

FHA HUD’s 203(k)

Home improvement financing can be a very tough job to settle with your primary lending company. If you think that it’s hard to huddle with the price of the house that you just bought, wait until you raise the issue of home improvement financing loans.
Some lending institutions will line your request up for eligibility for home improvement loans. This is going to be too much of a hassle for the borrowers since there’s still a possibility that their lending company would not approve of home improvement loan proposal. Of if they do buckle up because helpful as they might seem to be, some financial institutions will add-on maximum interest rates on your home improvement loan than your existing first mortgage rates.

The quick solution for this dilemma is to seek the counsel of your state’s FHA Department of Housing and Urban Development Office. Their 203(k) will not lend you the money which you need for home improvement, but they will set standards and regulations to secure that your loan will be approved with reasonable interest rates and at the same time being fair to business lending entities which offer home improvement loans as well. This lending option provides an array of payment options and at the same time sets rules and regulations before a property or house can be eligible to be approved for a home improvement financing loan.

Nobody said that getting a home improvement loan would be quick and easier if you go through HUD’s 203(k), but what they can assure a homeowner is a reasonable set of terms and agreements so you can go ahead and push through with your home improvement plans.

HUD’s 203(k) is fair and just to both borrower and lender in the sense that they inspect the property to be improved or remodeled and go the extra mile of checking other criterion before they approve a home improvement loan. They base the increase or decrease of the interest rate on the current state of the mortgaged property.


A majority of homeowner’s solution to their problem for home improvement is to seek out the help of their first mortgage provider. Again, the source of funds for home improvement loans will be decided by the homeowners themselves.
And most of the time, homeowners find their solution through home improvement loan options being offered by their first mortgage lending company. It’s a no brainer for most people. Why do they need to seek out and apply for eligibility with other companies and go through the tedious process of HUD’s 203(k) when they can be quickly approved for a second line mortgage from their first mortgage provider.

You really just need to whip out your home improvement calculator for you accurately compute and estimate how much money you should borrow from your current lending company. In your estimation do not forget to add the contractor services, the approximate prices of materials bought from hardware stores, and some miscellaneous costs which are directly involved in your home improvement project. Don’t try to cheat on the amount of money that you may want to borrow. At the end of the day, you’ll still be the one paying all of these debts with a whole lot of interest on them as well. Just estimate how much will be the overall cost of your improvement project so you don’t get into trouble paying it together with your first mortgage.

Whether it’s a swimming pool which you want to add in your backyard or some major interior remodel and improvement project that you need to get fixed ASAP, home improvement loans via the HUD’s 203(k) are the best,. Though it is a bit of a slow process for some impatient homeowners, it provides both the borrower and lender the great deals before the home improvement loan is approved.

On the other hand, first mortgage lending companies is where most people go directly when they want to do some major home improvement projects for their homes. The process is faster. The eligibility will still be dependent on your credit score, your consistency in paying on time on your first mortgage, and the original state of the house when you bought it through your lending institution. Regardless of all these set of criteria, your eligibility for a home improvement loan will be approved nonetheless.

As a borrower, you need to pay them on time of course. Both your first mortgage and home equity in the form of your home improvement loan should always be paid before the due date to avoid any penalty charges which then can affect your credit score, which in turn can reflect your credit worthiness and character as an individual capable of paying debts for your house and the additional home improvement loan.




© 2004 -- DailyWisdom4u.com -- All Rights Reserved             home improvement loans