Securing a loan for your home is a large financial commitment. The purchase of your home is only the start of the investment process, however. You still have to budget for regular upkeep and any improvements you want to make. An FHA 203k loan can help you finance improvements on your home by allowing you to borrow against the equity of your home. Here’s how you can qualify.
As with most loans, you must prove you are a relatively safe credit risk in order for Sun West Mortgage to offer you a home improvement loan. Fortunately, it only takes a credit score of 580 or above to be considered for this type of financing.
FHA 203k loans are designed primarily to help you make your home livable. These loans are best suited to projects that involve home repairs that increase the value of your home, enhance its structural integrity or make it safer. If you are just wanting to add a pool or a new room, other types of financing may be more helpful. Home improvement loans can help with projects such as replacing old plumbing and resolving accessibility issues.
When you need major improvement on your home, there are options other than paying the costs out of pocket. A home improvement loan can make changes more affordable.