Many homeowners know that the true benefit of homeownership is that over time, your home can become a valuable asset. And for homeowners or potential homeowers, there are some potential things that you can do to add more equity to your home.
And financing these things is easy with the FHA 203k streamline loan.
The government-backed FHA 203k streamline loan program can finance repairs, renovations and home improvements into a mortgage instead of drawing on the current equity.
Here are just a few upgrades that are possible to finance with the FHA 203k streamline program that can add instant equity to your home.
Add an addition.
When you add an addition onto an existing home, you have more square footage. More square footage translates to more value, the improvement can be as small as adding balcony screens and fences on the perimeter. An easy way to double the square footage of a single level home is to “pop the top” and add rooms to a second or third floor to the house.
Turn it into a Duplex.
The 203k guidelines state that the home must be owner-occupied. It also cannot exceed 4 units. Other than that, you’re pretty free to use the home how you want. A homeowner can take a house and turn it into a duplex, live in part of it and rent out the other. Once again, this turns your lagging investment (in this poor market you keep hearing about) into a break-even or money-making situation.
Do a remodel.
Remodeling a kitchen, bathroom, guest room or any other room in your house can modernize it and bring the value of your home up. One easy way to finance a remodel is through a FHA 203k streamline loan.
Whether it’s a refinance to create instant equity, or a purchase that needs a little TLC, FHA 203k upgrades can help add value to your home.
Kevin the 203k loan guy says
The 203k streamline loan is like having a $35k home equity loan built into a first mortgage. The 203k streamline is for cosmetic purposes, the 203k standard loan does the bigger jobs that involve structural issues. Any way you cut it both loans can solve a lot of problems when buying or refinancing a home and create a win-win for all involved. 203k loan