How to use FHA Loans to Invest in your Current Home

May 1, 2007 by

FHA LoansMaking improvements to your home is an easy way to raise its value. With a FHA loan you could be able to include the costs associated with your home improvements with your loan. The Department of Housing and Urban Development’s 203 (k) program is one in which you can refinance your current home or even purchase a new one in need of improvements and include all costs in the loan.

Aside from being able to use it to invest in your new or current home, there are numerous advantages to using a FHA loan. First and foremost is the ease with which one can qualify for a FHA loan as opposed to more traditional types of loans. Because the FHA is simply guaranteeing your loan lenders will be more inclined to give you the loan you need to refinance your home. This means that lenders have considerably less to lose by extending you a loan, because if you do go into default and they do have to foreclose they will get their money back.

Another reason FHA loans are easier to get is due to the relaxed requirements. Good or perfect credit is not required by the FHA for one of their backed loans, which makes it a strong alternative to traditional loans, especially since typically predatory lending practices have come under increased public and political scrutiny.

Two more advantages of a FHA are the lower interest rates, which translates directly to no or low down payments. The lower interest rates means your monthly payments will be considerably lower. So much so that you can afford to finance more of the home and pay less in the down payment. Sometimes you can even finance the entirety of the home and won’t need a down payment at all.

For more information on FHA loans and how they can help you invest in your new or current home visit HUD’s website or this handy FHA Mortgage Guide I spotted on MortgageLoanPlace.com.

Post contributed by Brandon Laughridge

Popularity: 5% [?]



Related Posts


5 Responses to “How to use FHA Loans to Invest in your Current Home”

  1. Veliko Turnovo Hills on October 9th, 2007 11:23 pm

    The advantage of a FHA is the lower interest rates!

  2. advanceloan.net on July 8th, 2009 3:18 am

    With the current financial crisis hovering us, I think that this is a great way to balance one’s savings to accommodate plans of buying a house.

  3. Real Estate Taxi on July 9th, 2009 11:44 am

    Anyone planning on remodeling there home should look into governmental home financing. The government wants you to improve your neighborhoods value, they go so far as to pay for you.

  4. mortgage loan modification on August 13th, 2009 1:45 pm

    Are they still doing FHA 203(k) loans? Is there a good place to look for the requirements and guidelines?

  5. Sarai Montemayor on November 6th, 2011 10:14 am

    Home buyers should really take advantage of FHA loans and other government loan programs where they are eligible to apply. they offer desirable loan terms and conditions such as lower down payment requirement.

    please visit: Stafford Homes for Sale

Got something to say?







Recent Posts


css.php