HOME REPAIR? LEARN ABOUT YOUR LOAN OPTIONS

As the rise in real estate prices that began around 2009 continues, for most homeowners equity is increasing too. Now is a good time to consider renovations to your home.

There are many reasons to renovate and multiple home loan options available to homeowners with renovation on their mind.

Do you need more room? Maybe you just want to improve your space? Either way, it is good to understand how this can be achieved. State College mortgage brokers Principle Home Mortgage are specialists at helping their clients understand all the loan options available to them.

Currently there are both government and conventional options available for home renovation needs.

If the current value of your home is too low to get the kind of home improvement loan you’re after, the FHA’s 203K renovation loan may be just what you’re looking for. The 203K allows for the finished value to be taken into consideration when proposing renovations.

D. Shane Whitteker is the owner and lead broker at Principle Home Mortgage.

“The 203K is a big advantage for anyone who does not have enough equity to pull money for renovations,” Whitteker says.

If you’re already qualifying for other loans, the 203K can increase the scope of your improvement project.

“This type of loan also allows for more renovations for someone that has significant equity but not quite enough to get the work done that is required,” Whitteker added.

You can also get the job done with a more conventional loan, which can also be based on the finished value of the home after renovations.

“The conventional loan for renovation is also a good option depending on the situation of the borrower,” Whitteker says.

According to Whitteker, these types of loans can also be used when buying a home that needs work. This can be a large savings to a buyer willing to utilize this type of loan.

“Often times homes that need work can be purchased at a discount. Another advantage is that a person has more ability to set the home up in a way that is more suitable to their needs.”

To learn more about the different home improvement loans available to you, contact Principle Home Mortgage in the heart of Central Pennsylvania today.