Living in Chicago and looking to redo your home? Or buy property? You might want to consider taking out a loan to fund these expenses. After all, there’s a specific kind of loan for such needs. A rehab loan may just hold the key to all your worries.
A rehab loan can be used to finance the rehabilitation of your current home and/or building. You can avail it from a conventional lender, but this loan is generally insured by governmental agencies to minimize the risk for the lender.
Also known as an FHA 203k loan, the federal government offers these loans to encourage lenders to finance home purchases that appear to be dicey. This works well for the government as they consider it an investment which can be utilized to rehabilitate and spruce up neighborhoods, alongside facilitating increased opportunities for home ownership.
Rehab loans are especially meant to be taken out for either damaged homes, or those that are in serious need of rehabilitation. They cover the cost of the property as well as the cost of home repairs. What makes these loans appealing is that the down payment is pretty low, and the eligibility criteria are flexible.
And if you thought that was all, think again because there’s more. Rehab loans can also be used to purchase property.
This allows interested home buyers to avail a loan for more than its current value. The additional value to the home is added when the repairs are made, rendering the loan fully secured in the long-term.
The Federal Housing Administration (FHA) stipulates that you use a minimum of $5000 towards eligible rehabilitation and repairs, which are required to be completed within 6 months of the loan’s closing.
The great thing about taking out a rehab loan is that it can be use for most types of home improvement projects. Extravagant amenities such as building pools or landscaping may not be covered though, especially from governmental sources. If you plan to use a governmental package, it is advised that you clearly understands what it entails before applying for it.
A rehab loan can be used to finance the rehabilitation of your current home and/or building. You can avail it from a conventional lender, but this loan is generally insured by governmental agencies to minimize the risk for the lender.
Also known as an FHA 203k loan, the federal government offers these loans to encourage lenders to finance home purchases that appear to be dicey. This works well for the government as they consider it an investment which can be utilized to rehabilitate and spruce up neighborhoods, alongside facilitating increased opportunities for home ownership.
Rehab loans are especially meant to be taken out for either damaged homes, or those that are in serious need of rehabilitation. They cover the cost of the property as well as the cost of home repairs. What makes these loans appealing is that the down payment is pretty low, and the eligibility criteria are flexible.
And if you thought that was all, think again because there’s more. Rehab loans can also be used to purchase property.
This allows interested home buyers to avail a loan for more than its current value. The additional value to the home is added when the repairs are made, rendering the loan fully secured in the long-term.
The Federal Housing Administration (FHA) stipulates that you use a minimum of $5000 towards eligible rehabilitation and repairs, which are required to be completed within 6 months of the loan’s closing.
The great thing about taking out a rehab loan is that it can be use for most types of home improvement projects. Extravagant amenities such as building pools or landscaping may not be covered though, especially from governmental sources. If you plan to use a governmental package, it is advised that you clearly understands what it entails before applying for it.
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