Refinance to Remodel

Jul 16th, 2011 | By | Category: The Mortgage Connection

refinance or remodel Tucson | Mike Morgan | The Sahuarita ConnectionBy Mike Morgan of Peoples Mortgage Company LO LICENSE #0912532 LO NMLS# 224433 BKBR# 0115327 COMPANY NMLS#6274

Current home owners, did you know that just about anything in your home can be repaired, upgraded or remodeled with a simple rehab refinance?

Last issue we told you that you could do a 203K loan if you wanted to purchase a home that was in need of repairs or upgrades. You can also borrow money through a refinance to do repairs or make improvements to your existing home.

As your family grows or your needs just change you may think that you have to move into a new home. This may be the right option for you but it may not and it is not your only option. You could possibly turn your current home into a larger, more updated home with a 203K rehabilitation refinance. Homeowners can consoli- date their existing mortgage and the cost of the home improvement project into one new loan up to 97.75% of the “after completed” value of the home. The “after completed” value is the anticipated value that takes into consideration all of the improvements that will be made to the house through the 203K refinance renovation project.

Have you been thinking about any of the following?

  • Adding an additional bedroom or bathroom •    Installing new flooring, tile or carpet •    Remodeling your kitchen or bath •    Painting the interior or exterior
  • Fixing or replacing plumbing, heating or air conditioning
  • Repairing or replacing your roof
  • Making energy conservation improvements
  • Landscaping your yard
  • Fixing your swimming pool (not to exceed $1,500)
  • Improvements for accessibility for persons with disabilities such as remodeling for wheelchair access, lowering kitchen cabinets, or installing wider doors and exterior ramps

All borrowers must qualify for a 203K loan based on FHA’s income & credit guidelines and a licensed contractor is required to complete the renovation. If you have any questions or are wondering if this might be the right kind of loan for you please feel free to contact me at 520.954.7686 with your specific questions. Or email me at morgan@peoplesmortgage.com. We are happy to help.