by 
The Curious Bag
-
Many Americans consider their homes their largest asset, according to AnchorBayTile.com. More than $300 billion is spent on renovation every year. Home renovation loans (also called rehabilitation loans) help homeowners pay for renovations in their homes.
FHA
The Federal Housing Commission (FHA) offers some homeowners home renovation loans. These allow homeowners to modernize their homes with a single loan.
Eligible Repairs
Rehabilitation loans are usually offered when renovations costing more than $5,000 are needed. These repairs may include new wiring, roof repair, new plumbing and repair of structural damage.
How It Works
FHA renovation loans can be applied for when buying a home. Once approved, contractors can draw against the loan to make repairs.
How It's Different
Renovation loans differ from mortgages in how amounts are determined. Renovation loans base loan amounts on how much the property will be worth after repairs, while most mortgages base amounts on the present condition of the house.
Considerations
These loans may be very helpful to those looking to overhaul a fixer-upper home. Talk to your local lender about home renovation loan possibilities.
Source:
More Information:
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC