Christian Rehab Home Loan
Christian rehab home loans are a means of refinancing a house to get cash out and to do extensive repairs to the home, thereby improving the property value. There are various lenders to choose from, but an option to explore when seeking a rehab home loan is through the Department of Housing and Urban Development. The assistance programs offered by HUD are under section 203(k) and will provide for reconstruction of a house being newly purchased or an existing owned house that will be refinanced to put the agency as the first mortgage holder.
Applying for this type of assistance program will include the involvement of consultants who work for HUD; appraisers and inspectors to secure two values - "As-is Value" and "Value after Rehabilitation"; the mortgage lender, contractor, and a plan reviewer; the borrower, and HUD. Qualifications of the renovations required to secure rehab home loans for the one to four family dwellings have a set minimum of $5,000, and must comply with Cost Effective Energy Conservation Standards. A rehab home loan can be used three ways: to purchase a property with an existing dwelling that will be renovated or reconstructed; to purchase a dwelling on one site and move it to an existing foundation and rehabilitate it; or to refinance and existing mortgage and rehabilitate the dwelling.
These loans will cover the following rehabilitations: structural alterations and improvements; changes for improved function and modernizing; health and safety improvements; aesthetic appeal and removal of outdated structure; replacement of plumbing, including connection to sewer systems; installation of well and/or septic system; roofing, flooring, and energy effective improvements; landscaping to protect the property; and handicap access. Once the major work to be covered by the rehab home loan meets the $5,000 minimum the following can be included in the excess amount financed: repairs to a swimming pool, new free-standing appliances, and painting of interior and exterior surfaces. "Be ye strong therefore, and let not your hands be weak: for your work shall be rewarded" (2 Chronicles 15:7).
Assistance set up through the HUD Section 203(k) must include Architectural Exhibits that specifically demonstrate the work to be done for the coverage. These exhibits will include a plot plan if a new addition is anticipated, a proposal exhibit of the interior if renovations or additions are to be done, or an official write up and work estimate to be done by the contractor. Rehab home loans for HUD are financed as FHA loans and require mortgage insurance that will include coverage of the cost of the fees and inspections and exhibits.
Considering the use of a HUD rehab home loan is especially wise when a borrower has an outstanding mortgage and the dwelling is the last thing to be taken care of with the household income. Losing the value of one's home is damaging to the property value as well as is a liability to the homeowner's insurance coverage which expects the insured property to be maintained for continued coverage. Rehab home loans are a viable option to retain or rebuild property value.
Rehab mortgage loans might be the answer for home buyers who are looking for a home, but are not finding the perfect home to fit their needs. It may also be the solution for a family that is looking into a specific district, but unable to find a home that is up to date and meeting their family's standards. With this type of financing, homes can be bought and rehabilitated at the same time. There is one monthly house payment for one low, monthly interest fee. Homebuyers can check the various programs online with the Internet and discover how qualifying for a rehab mortgage loan works.
The most popular mortgage loans are the ones offered by the Federal Housing Authority (FHA). These loans can be obtained at very competitive interest rates and the rehab mortgage loans can allow homebuyers to finance home repairs within the low interest costs of the financing. That's getting a great interest rate on a mortgage and a great interest rate on home improvement. With an FHA rehab mortgage loan, the FHA is backing, or guaranteeing the loan for standard lending agencies.
To meet the requirements of an FHA rehab mortgage loan, the property must meet specific criteria. The property being purchased must be a single-family residence and must be owner occupied. FHA funding cannot be used for rental properties. The FHA requires that the home be at least one year old, otherwise it would most likely not be in need of repair, except in the extreme case of neglect or natural disaster. There are also minimum and maximum repair margins included. The value of a property will need to be determined by an appraisal, and all properties should meet the market value after renovations are complete.
The range of repairs that are covered is extensive. A home can have a complete new look with modern conveniences and aesthetic appeal with the funding from rehab mortgage loans. The home purchase could be a completely new structure once the rehab process is finished. Our lives can also be completely new when we seek God and allow Him to be Lord of our lives. Accepting Christ as the atonement for sin can rehabilitate our heart, soul, and mind. "A new heart also will I give you, and a new spirit will I put within you: and I will take away the stony heart out of your flesh, and I will give you a heart of flesh." (Ezekiel 36:26)
Christian Remodeling Home LoanRemodeling home loans are home equity loans that are used to 'spruce a place up'. Someone may choose this when they want to lay new carpet, change the wall color, or put up crown moulding. These are simple low-cost projects that don't need a large sum of money. The reason to distinguish between these and home equity loans is that there are some different risks and requirements for each.
This financing is similar to a personal loan. It does not have much, if anything, to do with the overall value of the house. On the other hand, the value of the house now, versus when first bought will have a factor in, if and how much financing can be obtained with a remodeling home loan. Both types of financing are used to enhance the value and visual appeal of the property, but are handled differently.
When considering obtaining some financing to remodel, start the research with the financial institution that holds the mortgage for the house owned. They may give special rates knowing that they are enhancing their own property. Using the bank that is holding the mortgage is not always the best opportunity for remodeling home loans though. Shop around on the internet and through the telephone book or ask friends or neighbors who they used and why. The 'why' is an important question. There are many financial institutions out there that offer remodeling home loan options, but what is right for the goose may not be right for the gander, so to speak. Take in all the information available and figure out what is important.
Once armed with a handful of options, fully examine their qualities. Each is going to have its 'shining star', the reason this should be the deal. Evaluate all of the remodeling home loans individually and when there are only 2-3 left on the list, compare them. Figure out which has the best interest rate and the least overall fees during the life of the financing. Lastly, but most importantly, figure out which has the best customer service. If a problem arises there will be the opportunity to talk to someone (a real person).
After going through all this research and decision making about remodeling home loans, choosing the style of carpeting won't be so bad, and the decision to update the home won't be regretted either. Take the same time and consideration choosing the remodeling home loan as for the carpet color. If something doesn't feel right or the right opportunity just isn't presenting itself right now, wait a few months and look again. "But let patience have her perfect work, that ye may be perfect and entire, wanting nothing." (James 1:4)
Secured home loans or home equity loans allow borrowing money using a home as security or collateral. A loan's security or collateral is what is used as a pledge to a lender that the debt will be repaid. If the debt is defaulted on, the home can be repossessed by the lender. Secured home loans are incredibly popular for several reasons.
First, this financing enables borrowing against the equity that has accumulated in the property. With the rapid rise in real estate prices, many people have earned equity in their homes as the prices in their area have continued to rise. The equity is the difference between what the house can be sold for and how much is owed on the mortgage. Secured home loans are second mortgages that enable turning this equity into cash to be used for virtually any purpose. Money may be needed to pay off credit cards or debts or paying for a child's education, remodeling projects, or other large purchases.
Second, these loans have numerous advantages. Borrowers who are looking for large sums of money or those who might not have solid credit might find a secured home loan to be the right option for them. Because lenders carry a lower risk on secured financing than on other types of personal financing, they are more liberal in terms of the amount of money that can be qualified for. Lenders are also willing to overlook many credit problems because they can simply repossess the property if the debt is defaulted on. Plus, most lenders know that borrowers make these payments a priority since their homes are on the line.
Last, because there is a lower risk, there is typically a much lower interest rate. An additional benefit is that the interest on secured home loans is often tax deductible. Plus, it can be used for virtually any purpose as opposed to some types of financing that carries stringent guidelines for how funds can be used. The main disadvantage is if the payments are defaulted on, losing the property is the risk taken. Make sure that the budget can handle an additional payment so that the residence is not in jeopardy. "He trusted on the Lord that He would deliver him: let Him deliver him, seeing He delighted in him." ( Psalms 22:8)
To find the best rate, make sure to shop around at a variety of Christian lenders including banks, brokers, and credit unions. Before beginning to shop for a secured home loan, make sure credit reports are accurate since lenders will use this as a factor in the overall approval process. Make sure to compare closing fees and not just interest rates. Ask lenders to provide a good faith estimate, which outlines all fees associated with the financing. With careful research and planning, a secured home loan can provide the cash needed to pay off debts or finance large purchases.