Improving Your Home
A remodeling project may involve lots of choices, but you have only five basic ways to pay for it: cash, credit cards, personal loans, home equity loans, or cash out refinancing.
Many loan options fall into the last category of cash out refinancing, but most require the value of your home to far exceed the amount of the loan. If you simply don’t have the equity, one little known option may be the answer – the FHA 203k.
The streamline version of the “K” is one of the industry’s best kept secrets. Its big advantage is that it allows you to finance the cost of improvements based on your home’s projected values upon completion. Most other loans require you either to show you already have the equity or to finish the projects first.