Remodeling Loans

FHA Home Improvement Loans

FHA home improvement loans are available to make improvements on your home. The Federal Housing Administration (FHA) makes it easier for consumers to get affordable home improvement loans by allowing loans up to $25,000 without any equity in the home. Actually, the loan can exceed the value of the home.

If you are a private real estate investor, these loans can also be used on multi-family residences. For improving a multi-family structure, the maximum loan amount is $12,000 per family unit, not to exceed a total of $60,000 for the structure.

There are many different programs available for home buyers or owners. One of them is the 203(k) program. This FHA home improvement loan enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.

For housing rehabilitation activities that do not require buying or refinancing the property, borrowers may also consider HUD’s Title I Home Improvement Loan program.

If you live in California, home improvement loans can be obtained through federal programs as well as many local banks. Have you been banking with a certain institution for a number of years? Great. Go in and talk to a loan officer. Stress the fact that you have been a loyal customer of theirs for years and you would like to get the best home improvement loan interest rate.

You may also be eligible for a home renovation grant. The Single-Family Housing Program provides homeownership opportunities to low and moderate-income rural Americans through several loan, grant, and guarantee programs. The program also makes funding available to individuals to finance vital improvements necessary to make their homes decent, safe, and sanitary.

For very low income families who own homes in need of repair, the Home Repair Loan and Grant Program offers loans and grants for renovation. The Home Repair Program also provides funds to make a home accessible to someone with disabilities.

Money may be provided, for example, to repair a leaking roof; to replace a wood stove with central heating; to construct a front-door ramp for someone using a wheelchair; or to replace an outhouse and pump with running water, a bathroom, and a waste disposal system. A grant is different from FHA home improvement loans in that grants don’t need to be repaid.