FHA 203K Loan

 The vast majority of homeowners – around 91%, in fact – think their houses are in need of minor or major updates, repairs, or upgrades. However, inflation pushed the price of home improvements up by 19% during 2022 (based on mid-2022 figures), and prices are continuing to rise in 2023. As a result, some homeowners may look at getting a home improvement loan to handle the expense.  Whether its a complete renovation from top to bottom, or just a facelift the FHA 203K loan is a great loan for the following reasons:

• Gives you the stability and simplicity of rolling all your upgrades and projects into one mortgage loan
• The FHA 203K loan offers a fixed loan product so your loan is secure and will never adjust.
• Gives you the ability to select your own contractors that you know and trust.
• allows you to customize your home and not pay the costs to remodel out of pocket.
• The 203K gives you the freedom of running your own job and completing some renovations yourself.
• Borrow the money from yourself use your own equity to complete the upgrades you want.  This is smart as you are putting more equity back into the home.

The 203K loan gives you the freedom to complete a kitchen renovation, bathroom renovation, or you can gut and remodel the entire home.  While home improvement loans can provide value, there are downsides to using them.  Please review the pros and cons below and make your own decision.  What are you trying to accomplish with your current home, or your future dream home.