- Update your home’s features or enjoy more living space with a newly designed kitchen, expanding a home office, or a master-bedroom suite
- Make your home more functional by adding extra rooms or updating bathrooms
- Personalize your home to fit your lifestyle by adding enhancements such as an enclosed porch, deck, or swimming pool
- Make your home more energy efficient with a new roof or replacement windows
- Make an estimate of your home’s current market value
- Multiply your market value by .80
- From that amount, subtract what you owe on the mortgage and any outstanding debt secured by the property
The result will give you an idea of the equity in your home that may be available for financing. An Onyx Lending loan advisor can definitely help you review options.
FHA 203(k) Renovation Loans
The following are great situations for a Renovation Loan:
- If you are purchasing a fixer-upper home in need of upgrades, repairs or larger renovation projects from a traditional home seller, even if the homes is being sold “as is,.” a renovation loan may be perfect for you.
- Buying a foreclosed property from banks, housing agencies and government-sponsored enterprises, as well as properties eligible for short-sale transactions.
- Refinancing with today’s low rates and getting the funds you need to make your current home your dream home.
There are specific guidelines for repairs and using contractors under this type of loan. For example, Minor remodeling, such as in the kitchen, which does not involve structural repairs qualify, however a major rehabilitation or major remodeling, such as relocation of a load-bearing wall is not. As such it’s best to discuss your potential upgrades with an Onyx Loan Advisor in advance.