Government Christian Home Improvement Loan
A government Christian home improvement loan is also known as a FHA insured HUD 203(k) program that can help a borrower purchase or refinance a property in need of repair. These types of contracts are needed because borrowers, needing to secure funds to purchase a house that needs repair, may not qualify for a contract to make the purchase until the repairs have been made. It is a catch 22 situation in which the bank will not lend the money to buy the home until completed repairs are confirmed, but the repairs cannot be completed until the home is purchased.
Approved mortgage and lending services offer a government home improvement loan for qualified borrowers. The contract allows the borrower to receive both the funds to purchase the home and to make the appropriate repairs. The contract is only available to borrowers who plan on occupying the residence. First, the borrower locates the property desired for purchase and repair. Then a sales contract is executed that states the results of an analysis done that would value the house at its worth with the completion of all appropriate funded repairs.
The sales contract should state that the borrower plans on financing the loan through the use of a participating lending organization. Approval for the government home improvement loan is given by FHA and the lender. A detailed proposal must be submitted with application of all contracts. The detailed proposal should include exactly what repairs are to be made, by whom, and what the estimated cost would be. The lender will appraise the property based on the proposal and distribute the first wave of funds for the purchase of the property.
The next wave of funds will go directly to the contractor, with no more being distributed until the first phase of repair is complete. The government home improvement loan funds are distributed periodically as each section of repair is completed. They act similar to construction loans. When the entire project is complete, all loans must be refinanced by a conventional loan and repaid. Proverbs 9:1 says, "Wisdom builded a house." Even though we can get quick funds to help us with our construction projects, God doesn't excuse us from managing our resources well. The first step we need to take when entering into these contracts is to pray and ask God for His guidance. When we seek His will first, He will help us avoid many financial traps.
FHA home loans are government financing arrangements backed by the Federal government and are usually easier to qualify for compared to a conventional arrangement. An FHA home loan will usually finance 97% of the entire financed amount, and require only 3% down. The Department of Housing and Urban Development (HUD) insures these agreements, which have several variations available. Such financing is available as standard fixed rates, rehab loans, condominium loans, adjustable rate mortgages, energy efficient mortgages, hybrid adjustable, two to one buy-down, and reverse mortgages for seniors.
Advantages of this type of financing also allows for closing costs to be obtained through government agencies, non-profit organizations or through a gift received. A monthly insurance premium is usually cheaper for Federally secured financing versus a conventional agreement, and they are available to anyone, not just first time homebuyers. One disadvantage to an FHA home loan might include a limited amount. If the borrower wishes to purchase a property that exceeds the financed amount allowed through an FHA finance, then the additional amount would have to be part of the down payment.
This is a good choice for first time buyers who need help in qualifying for a home finance, because this financing option doesn't include income limits or strict credit scoring towards qualifying. FHA home loan documentation includes income verification, liability information, and proof of funds to close. Paycheck stubs for at least one month, showing year to date earnings are required for FHA home loans. The last 2 years of W-2's for salaried and the last 2 years tax returns for self-employed individuals are required as well. Additional documents include the last two month's of bank statements and statements for investment accounts.
Derogatory credit history needs documented explanations including discharge paperwork for bankruptcies. Other requirements would include personal identification, and current landlord information. An FHA lender will handle other documentation requirements such as, title reports, credit reports, appraisals and surveys. It is best to disclose all personal information requested and thereby rest easy knowing that all the cards are on the table. "I have chosen the way of truth: thy judgments have I laid before me. I have stuck unto thy testimonies. O Lord, put me not to shame" (Psalm 119:30-31).
The cost for some of these documents may be passed on to the borrower. FHA home loans pay for allowable closing costs only. The lender is required to cover some of the non-allowable closing costs. Allowable closing costs usually include the appraisal, credit report, compliance inspection, escrow fee, home inspection costs, notary fee, recording fee, flood certification fee, title insurance costs, etc. Non-allowable closing costs through an FHA home loan may include a bring down fee, processing fee, documentation preparation fee, documentary transfer stamp tax, inspection fee, loan tie-in fee, photo fee, tax service fee, underwriting fee, etc.
VA Christian Home Improvement LoanVA home improvement loans are ones that are guaranteed by the Federal Government to lenders extending home improvement money to Veterans. They offer great advantages to veterans who own their home, and want to upgrade and update it. Taking out financing based on equity can help increase the value of the homestead, making this a wise financial investment decision. To find all there is to know about the different financing programs, Veterans may speak to lending agencies about the requirements and specifications, or can find more information on the Internet at government sites as well as mortgage company sites that specialize in this financing.
There are many wonderful financial advantages to getting a VA home improvement loan. If one is a Veteran, they do not require a cash down payment, offering 100% financing options. Additionally, there will be no penalties charged if the balance is paid off early. Veterans are sure to get competitive mortgage rates with easier qualifications than with any conventional financing. These can be used to make improvements with energy efficient features that save money and energy. Additions may also be covered, as well as roof repair, new windows and maybe some remodeling. "He that tilleth his land shall be satisfied with bread:" (Proverbs 12:11)
However, they cannot exceed 90% of the value of the home being approved. There are several other specifications required in getting VA home improvement loans. Veterans must also prove eligibility as the requirements will include proven military service and proven residency within the state where the application is submitted. Also, the National Guard and those serving in Reserve Units can qualify if they have served for a specified number of years. In some cases, the spouse of a deceased Veteran can obtain a VA home improvement loan, if the spouse has not remarried.
The Internet can be a valuable source of information for any VA home improvement loan and the support that is offered there. Getting online and researching VA home improvement loans can reveal the different lenders who work with the government in guaranteeing VA home loans. Veterans will want to make sure that they are receiving competitive rates for their improvement loans and competitive construction costs for the improvement project as well. Log on today, and discover how Veterans can qualify for improvement loans. This is just one of the few ways that our service men and women can reap some benefits for the service they have given to their country.
VA home loan lenders issue loans to United States veterans, military reserve, active military personal, and their spouses. A VA home loan lender provides loans to purchase a house, to build a house, make improvements on a house, refinance a mortgage, etc. These companies strive to provide equal opportunity to veterans and their spouses.
The money from the VA home loan lender must be used to purchase a house in the United States, Puerto Rico, Guam, Virgin Islands, American Samoa and Northern Mariana Islands. Veterans living and/or serving in the military overseas most likely will not qualify to purchase a house in a foreign country. For example if the soldier is stationed on a base in South Korea that does not provide housing for his wife and children, he will not be able to purchase a house in South Korea using the Veterans Administration loan money.
Several repayment options are available to approved applicants. The borrower may choose to have a fixed monthly payment, have a gradual increase in monthly payments, or give the mortgage company a large sum of money at the beginning of the mortgage to forgo paying a monthly loan payment for a few years. A VA home loan lender strives to provide quality services to United States veterans. Soldiers or veterans who need a new house or need to make home improvements should check out their local lenders for a program that is right for them. When choosing a lending option, it would be wise to seek God's assistance. In God's Word it states this: "...he is mighty in strength and wisdom." (Job 36:5) Ask God to share some of His wisdom when deciding what Veterans Administration programs or companies are best.
Pre-qualification is the goal for most VA home loan lenders. To qualify for the program, the applicant will need to prove that he or she served during World War II, Korean War, Vietnam War, and Persian Gulf War. Also, any peacetime service will qualify applicants if their service dates fall between 1947 until 1981. The applicant must have been honorably discharged or released from the military. Any dishonorable discharged veterans will not be eligible. VA home loan lenders can not accept applicants who served during World War I or applicants currently serving in certain classifications of the United States Reserve or National Guard. There are other federal mortgage programs that they can participate in.
Applicants can still expect a credit history check and income verification. A Christian lender can be found through any local chamber of commerce, recommendations from other veterans, or their local Veteran's Association office. Most lenders are willing to help applicants compile the necessary documentations or proof of eligibility to apply. A VA home loan lender will issue a mortgage that will mature up to thirty years.