Can you get qualified? Even without a substantial down payment saved, you’ll find there are programs—such as the FHA loan program.
FIND OUT YOUR SAVINGS BY LOCKING IN A SUPER LOW RATE
Securing A Low Mortgage Rate Can Be Your Best-Ever Decision
Take advantage of interest rates. There’s no guarantee that interest rates are going to be this low forever. By locking in a low interest rate, you can set yourself up to build wealth faster.
Use less money down than you imagined. The concept of saving up 20% for money down against a loan can scare some first-time home buyers. But we’ll explain why that doesn’t always have to apply to you.
What You Need to Know About Home Financing
According to some statistics, a majority of renters who want to buy a home don’t move forward because they’re afraid they don’t qualify! But there are plenty of programs that make it viable for lots of people—even those with poor credit—to qualify.
For many home buyers, the main issue is coming up with the down payment. Many of those who would otherwise buy a home feel they would move their purchase timeline forward if they could make the down payment.
With some programs it’s possible to pay with a relatively small down payment, much smaller than the usually-expected 20%.
Home sales are as hot as ever, with available homes sometimes going off the market in as little as three weeks in some areas—or even less.
2 Ways to Use Your FHA 203(k) Loan
Buy a Fixer-Upper (and Fix It Up)
Or... Renovate Your Current Home!
Your Renovation Wish List Could Include...
Increase window size
Bring in more natural light
Finish a basement or attic
Create a mother-in-law apartment or guest space
Correct foundational issues
Protect your investment for the long-term
Add a detached garage when one does not exist
There’s room for everyone
Knock down walls
Open up the floor plan to create versatile, welcoming spaces
Flood-proof your property
Add a retaining wall to prevent expensive damage
Repair the pool
Tired of leaks and cracks? Fix the pool & start enjoying it
Expand or refresh the kitchen
Cooking is just more fun in an updated kitchen
Add square footage
Growing your family? Grow your home alongside it!
And so much more! All funded by your single, convenient FHA 203(k) Renovation loan.
And start planning your renovations now!
After remodeling, 74% of owners have a greater desire to be in their home, and 65% have increased enjoyment in their home.
Source: National Association of Realtors® 2020 Remodeling Impact Report
How Does a Renovation Loan Work?
Depending on the types of repairs you plan to do, you have two options when it comes to securing a FHA 203(k) Renovation Loan: Limited and Standard.
The Limited 203(k) loan
The Limited 203(k) loan is for non-structural or “cosmetic” repairs. It covers up to $35,000 in renovation costs. With a Limited loan, you can do nearly anything that doesn’t affect the home’s structure! Think kitchen and bathroom remodels, carpet and flooring replacement, painting, appliance replacement, and much more.
The Standard 203(k) loan
The Standard 203(k) loan is a loan for projects with repair costs over $35,000. It can be used for structural or non-structural repairs. With a Standard Loan, you have even more flexibility. You can expand the home’s footprint, improve accessibility for differently abled people, and even move the home to a different site.
Discover what you can do with an FHA Purchase or Renovation loan!
Popular Options Available To Make Your Home Finance Dreams Come True!
15 year
A 15 year loan generally has lower interest rates, which means a lower overall total cost. These do come with higher monthly payments, but save thousands in interest with the shorter loan life. This is a good option for borrowers to build equity faster at a fixed rate and are looking to spend less over the life of the loan.
30 year
A 30 year mortgage has lower monthly payments, and is easier to qualify for than 15 year loans. Interest rates are typically slightly higher and it can take longer to build equity, but borrowers enjoy the flexibility to make higher payments (we don’t have prepayment penalties!). 30 year loans are the most common type of mortgage and they’re a great option for borrowers who want a fixed-rate and the lowest overall monthly payment.
VA
VA loans offer some of the best rates, and are only available to eligible service members who intend to live in the home. There is no minimum down payment, no private mortgage insurance, and the debt-to-income requirements are less strict than other loans. These loans are also praised for their streamlined refinance process (including no appraisal on most programs!). Overall, VA loans are a great deal for those who qualify!
FHA
FHA loans have easier credit requirements and require smaller down payments. They’re an excellent option for 1st time home buyers and for those with higher debt-to-income ratios. FHA loan programs do require monthly private mortgage insurance paid to the lender.
ARM
Adjustable Rate Mortgages aren’t for everyone, but they can be a good option if you’re planning to sell in the near future. ARMs traditionally have lower initial interest rates that are fixed for the first 1-7 years (depending on the loan). A borrower can take advantage of these low rates and avoid risk of a payment spike, if they refinance or sell before the fixed-rate period is over.
What should I do next?
Simple. Click any of our buttons above to lock in a super low rate. Don’t worry about a low credit score, either—you’ll find that there are plenty of programs out there that can help.
See if you’re eligible for your first home loan in 60 seconds or less!