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‘Financing’ Category

  1. Make Money With Home Improvement Efforts

    January 18, 2022 by Thomas Herr

    With the current real estate market, investing in home improvements is a choice many are making. The following article contains information you can use when considering projects for your home. You can make better decisions when you are more informed.

    Sometimes, you only need one little improvement to raise a home’s value. If you plan to list your home for sale in the near future, it may behoove you to take on a series of small projects beforehand. One thing you can do is to paint you home inside and outside. Something like this that is relatively low in cost can increase your home’s value exponentially.

    Ceiling Fans

    Use fans in your home during the summer months in order to be more energy efficient. Ceiling fans are great for air circulation as well, and they also cool a room. Using floor fans and ceiling fans will also help to lessen the energy you utilize, as you won’t need to run the air conditioner as hard. This will help you to save money.

    If your current residence lacks the square footage for a washing machine and dryer, you might consider purchasing a space-saving combo unit. You can fit many combo washer-dryers in the space of a dishwasher. A combo unit washes the clothes and when done switches to a dryer.

    TIP! Sponge your drywall. A sponge works as an effective tool to replace sanding.

    When it comes to home improvement, be sure that you take note of your surroundings and only make improvements that make sense. Examples of nonsensical improvements include non-insulated sun rooms in Michigan, and uncovered decks in Arizona; basically anything that causes potential buyers to think about whether you have made other odd choices while maintaining the house. Try to choose projects that go with the surrounding area, and take climate into consideration.

    Don’t buy expensive supplies. Instead, shop around and look for the best deals on home improvement materials. If you plan to replace flooring in multiple rooms, prepare to spend a significant amount of money. However, shopping around can save you hundreds of dollars. Discount supply stores and bargain stores are both good places to look.

    Ceramic tiles can really lose luster over time. They can even look grungy. A mixture of vinegar and water will safely clean most floors. Mop your floors as you would with any other product. The solution will wash away dirt and grime, leaving your floors clean again.

    TIP! Before installing new panels, you should paint vertical stripes on your walls. Regardless of how much care and caution you use when putting up paneling, old walls have a tendency to peek through.

    It is important that your bathroom has proper ventilation. Humidity from taking showers can create environments where mold can spread and grow. Even if you continuously repaint the walls of your bathroom, the mold still will not die. You will need to be proactive to prevent mold from growing. Put in a vent or new window to help air the room out.

    Having a home is a great opportunity to let your personality shine. More and more people are using home improvement projects to better their existing homes, rather than selling and buying a newer, more upgraded property. If you use the information shared in this artice, you can successfully improve your home.

    There are tremendous opportunities for small businesses and social entrepreneurs to support their communities through community foundations, donor advised funds and other means of giving back. Find the neighborhoods in Boston, Massachusetts where you can make the most impact on civic engagement in the community.

  2. Get Rehabilitation Mortgage Insurance to Improve Your Home

    February 11, 2015 by Thomas Herr

    construction houseThe U.S. Department of Housing and Urban Development (HUD) offers the Section 203(k) rehabilitation mortgage insurance program that allows homeowners and homebuyers to obtain financial assistance in purchasing, refinancing or rehabilitating their homes.

    The 203(k) rehabilitation mortgage insurance

    In purchasing a home that requires repairs or modifications, homebuyers often have to adhere to expensive and complicated processes. Customarily, home improvement loans have relatively high interest rates and brief repayment terms.

    The purpose of this mortgage insurance program is to provide solutions to help borrowers and lenders by insuring a fixed or adjustable long-term rate loans that covers a home’s purchase and rehabilitation. This program also saves borrowers an amount of cash and time because of the insured loans. Section 203(k) also safeguards lenders by enabling them to have insured loans even before the property’s value and condition provide enough security.

    Type of assistance

    Section 203(k) requires that the property is at least a year old for it to insure mortgages that cover the acquisition or rehabilitation of a home. A piece of the loan proceeds go to pay the seller to fill the bill of an existing mortgage. The remaining funds are directed to an escrow account and issued when the rehabilitation is completed. Rehabilitation costs at least $5,000 to qualify. However, the property’s total value must be in range within the Federal Housing Administration (FHA’s) area mortgage limit.

    The property’s value is determined by:

    • Property’s value prior rehabilitation and rehabilitation costs
    • 110 percent of the property’s appraised value after rehabilitation

    Lenders usually impose additional charges to cover supplemental origination, preparation of documents, review of rehabilitation plans and appraisals.


    The level of the rehabilitation under Section 203(k) may range from minor to virtual reconstruction (minor repairs must exceed $5,000 in costs). A property is also qualified provided it has been demolished or will be bulldozed as part of the rehabilitation and that the existing foundation is still intact.

    Section 203(k) insured loans can also fund the rehabilitation of residential parts of a property that has a non-residential value.These loans can also cover property size conversions to a one- to four-unit construction.

    Using Section 203(k), borrowers can make these types of improvements/upgrades:

    • Alterations and reconstruction of the remaining structure
    • Modernization and home function improvements
    • Removal of health and safety hazards
    • Improvement of physical appearance
    • Elimination of obsolescence
    • Replacement or reconditioning of plumbing
    • Installation of water and waste management systems
    • Replacement or addition of roofs, gutters and downspouts
    • Replacement or upgrade of flooring; adding floor treatments
    • Improvement of site and landscape features
    • Addition of handicap-accessible construction
    • Addition of high energy efficiency improvements


    HUD mandates that properties or homes financed under Section 203(k) must follow basic energy efficiency and building standards.

    To apply

    Loan applications must be directly submitted to an FHA-approved lender. Lenders choose an FHA-approved consultant, who produces a description of work needed to improve the property. Then, an appraiser establishes the repaired value of the property.

    Eligible applicants must also demonstrate the capability of meeting and repaying their loans. The FHA Resource Center can provide you with answers to your mortgage and loan products as well as your home improvement and rehabilitation questions.


  3. Considering Renovation? Get that Home Improvement Project Done through Financing

    February 4, 2015 by Thomas Herr

    home financingA major home improvement project is often associated with high costs. So, homeowners usually think twice about whether these costs would match their budget. But, did you know there is a range of available financing options to help homeowners get the overhaul their homes deserve?

    Read on why…

    Financing is the way to go

    There is a variety of factors involved in a home improvement project. First, consider whether you have timeon your hands. Planning and undertaking home improvement projects can be strenuous so you want to get these projects done ASAP. Set up a date on when to start and complete the project so you will have a schedule.

    Next is considering financing. Once you have planned this project, you realized you cannot afford the major expenses involved even if you have coughed up a substantial amount of savings. Talk to a lender about the available financing options that would suit your budget, situation and personal preferences. While some contractors do offer financing options, they typically run at a higher interest rate and are often unsecured. If you’re unsure of being eligible for financing, you can choose this convenient route.

    You can also choose to borrow from conventional lending institutions. You can start off with the bank of your choice or a credit union. These institutions provide good, if not high, interest rates and if you’re a member, you will be given generous terms. Considering mortgage brokers is also a good idea if you’re inquiring about home financing. In fact, you can take advantage of a rehabilitation mortgage insurance program to help homeowners like you secure home improvement grants and loans.

    The type of financing that suits you

    To be eligible for home loans, your credit history should be good. Your income and other securable assets are also examined and verified to see whether you are capable of repayment. Lenders review these things and they will use what they learn to determine the types of financing that you qualify for.

    Everything depends on your situation, however. Below is a list of common financing options that you, as a homeowner, can use to finish off that long overdue home improvement project:

    Cash-out Refinancing:

    Cash-out refinancing changes your current mortgage with another loan that usually reimburses your current mortgage balance and utilizes your home equity to present additional funds for other functions.

    Home Equity Loan:

    A home equity loan enables you to obtain the full loan amount straight away. With this type of financing, you can select from a range of loan terms, enjoy fixed interest rates, flexibility (you can choose the option of home equity closing costs that best fit your needs) and potential tax benefits since your home equity loan interest may be tax deductible.

    Home Equity Line of Credit:

    A home equity line of credit lets you decide if you want to continue with a variable-interest rate or adapt a fixed-rate advance option exclusive of refinancing. With this type of financing, you can also opt for the best closing cost options that are suitable to your needs. Furthermore, this financing option offers tax deductions on your home equity financing interest.

  4. Financing Home Improvements

    January 29, 2015 by Thomas Herr

  5. Financing Improvements – the Smart Way

    January 28, 2015 by Thomas Herr

    Searching for a Home-Improvement Loan

    Concerns you must ask when searching for a home-improvement loan:

    Does the loan provider have a license to make loans?

    A license is not needed for supervised monetary organizations such as banks, cooperative credit union, and so on. If the lender is not a depository organization, contact your state’s customer credit regulative agency.

    Are there any closing expenses?

    Examples of closing expenses are loan origination charges and points. Numerous loan providers provide house improvement loans without any closing expenses.

    Exactly what is the rate of interest being provided for this loan?

    Rates will certainly differ from loan provider to loan provider. Search in your regional paper for advertisements for mortgages and loans to obtain existing rates.

    Could I get a much better rate by refinancing my first home loan?

    Perhaps. Rates are generally further up for house improvement loans than for first lien home loans. Refinancing of your first home loan for house improvements would depend upon the rate at the time for primary  home loans. If the rates are greater than your existing home loan rate, do not refinance your existing home mortgage; secure a 2nd home mortgage for a much shorter term.

    Is the loan basic interest?

    The loan must be a basic interest loan, meanings that your interest is determined daily and is based upon your primary balance. If the loan is “precomputed,” the balance consists of the primary balance and the interest for the regard to your loan and you get a discount of the unearned interest upon prepayment completely.

    Will the loan provider finance One Hundred Percent of the house improvement agreement?

    Some loan providers will certainly fund just a part of the agreement; others will fund the whole amount of your project.

    Does the loan have a prepayment fine?

    This describes your capability to make additional primary payments at any time or settle the loan early without fine. Read your legal contract thoroughly for any prepayment fines. Some states have limitations on prepayment fines on 2nd home loan loans and some states do not permit them.


    Look around

    Prior to you considering any house improvements, you need to look around. Call your regional Better Business Bureau or ask them for references when you have actually discovered an improvement contractor that fulfills your requirements. See to it they are bonded or guaranteed. Will they ensure their work?

    Be sure you comprehend all of the arrangements when you start a conditional agreement for house improvements. Some agreements are not finished up until the house improvements are finished. Some agreements are finished when the improvements are set with payments not to start till the improvements have actually been finished.

    If you are getting a loan for house improvements, make certain all the improvements are complete prior to funds being paid out to the house improvement contractor.

    Don’t Being A Victim

    Americans who borrow against their houses need to realize that if they fail to make the needed payments on the loan, whether due of loss of earnings, illness, or in the event the service provider has actually failed to finish the maintenance and repairs as agreed, their house can be lost in repossession. While some businesses providing these services are respectable, lots of others are just thinking about just how much cash they can make and will certainly do and say anything to accomplish their objective. They bear little or no threat in these endeavors given that the house owner’s home is their ultimate security.

    There are, nevertheless, vital steps that a property owner can take to prevent ending up being a victim of 2nd home mortgage scams, which eventually might cause repossession.


    Handling House Improvement Service providers & Finance Companies

    Do’s …

    • Be especially cautious if replying to house solicitations; lots of lawyers are seasoned sales individuals who can be convincing and really proficient at offering you things you do not desire or require.
    • Constantly get at least 2 written quotes for house maintenance, repairs and improvements from experts of your very own choosing. Each quote ought to explain the work, the cost, the obligation for tidying up, and the per hour rate for any added work.
    • See to it that any service provider you pick is authorized and signed up by the state or local licensing agency.
    • Get references for the contractor and talk with those references about fulfillment and any issues that occurred; if possible, have a look at work carried out by that contractor.
    • Have a lawyer or check out or somebody you trust check out everything prior to you sign.
    • Keep a copy of everything you sign.
    • Screen all work routinely to be sure it fulfills agreement specs.

    Don’ts …

    • If you do not desire the service being provided, do not let yourself get talked into it, even if you believe agreeing would get that individual off your back.
    • If the contractor or seller attempts to get you to sign immediately by stating it’s a one-time offer, do not accept.
    • If you have any doubts about whether you require the service being provided, get a 3rd or 2nd viewpoint and quote from experts of your very own picking.
    • Never ever sign an agreement or any notepad without reading it thoroughly and totally comprehending exactly what it binds you to do; if possible, get a lawyer to examine it and advise you prior to signing.
    • Do not make or release a last payment to the contractor or sign an accreditation of acceptable conclusion until appropriate assessments are made and you are pleased with the work.


    Funding House Improvements

    To obtain a loan to fund house improvements, you need to have equity in you house. Get a loan at a bank initially; bank loans are most likely to cost less than loan items provided by finance businesses.

    Stay clear of going to a loan provider the seller or specialist refers unless provided an option of loan providers who are independent from the seller or service provider; discover if a broker’s cost will be included in this recommendation and precisely just how much.

    Make sure you comprehend your commitments under the loan, specifically when you are utilizing your house as security, consisting of:

    • Just how much is the overall principal and quantity funded, and how was it computed?
    • Exactly what is the interest rate (APR)?
    • Just how much will monthly payments be?
    • Exactly what is the loan term– i.e., for how long will I need to pay it off?
    • Exists a lump-sum or balloon payment and, if so, for just how much and when is it due?

    Only sign loan documents after you extensively study and comprehend to all terms, seeking advice from a lawyer, if required.


    Early Alerting Indications

    Avoid any loan provider who:

    • Informs you, or needs you to falsify info on the loan application. The loan provider informs you to state your loan is mostly for company functions when it’s not.
    • Pressures you into obtaining a loan or obtaining more cash than you require.
    • Pressures you into accepting month-to-month payments you can not make.
    • Fails to offer necessary loan disclosures or informs you not to read them.
    • Misrepresents the type of credit you’re getting. Calling a one-time loan a line of credit.
    • Assures one set of terms initially and offers you another set of terms to sign-with no genuine description for the modification.
    • Informs you to sign blank forms-the loan provider states they’ll fill them in later on.
    • States you can not have copies of files that you have actually signed.


    Exactly what should I do if I signed an agreement however have changed my mind?

    If you do not believe you require the services contracted for, whether you do not think you got a bargain or it’s simply too expensive, there may be time delegated to revoke the offer. Where a house solicitation happened or if you are funding with a house equity loan, federal and most states’ law offer you 3 (3) business days to cancel the agreement without charge. You should cancel in writing and mail the notification of cancellation before the 3rd business day after signing the agreement. This is called your “right of rescission.”.

    Upon signing the agreement, a cancellation advice or notification of rescission must be supplied to you by the contractor or loan provider. If none was supplied, just compose a short letter mentioning that you want to exercise your right to cancel, sign, and mail it to the contractor or loan provider.


    Exactly what should I do if I believe I am a victim of home mortgage scams?

    Anybody preyed on by a deceitful contractor and/or predatory loan provider need to get in touch with a lawyer instantly. A lawyer could have the ability to assist by discovering defenses against any claim brought by the service provider.

  6. Finding Money for Your Home Improvement Project

    January 22, 2015 by Thomas Herr

    If your home improvement project involves safety repairs of increasing energy efficiency of your property, you might be able to find help from programs offered by the Department of Housing and Urban Development. While there are few home improvement grants from HUD there are loan programs.

    Financing Improvements

    As a policy, the thriftiest method to finance improvements is to pay cash. However if you lack the funds even for immediate repair services such as replacing a deteriorated roofing or a broken-down heating system, you must weigh the cost of loaning against the expense of postponing the work. You want to do it in the least costly method if you have to obtain. Use caution when utilizing charge card borrowing because of rate of interest.

    You should go to your bank or other lender and use for a loan if you borrow cash for the improvements. After examining to see if your credit is satisfactory, the loan provider specifies the regards to the loan and you have to consent to them before signing the note. Do not continue with house enhancement plans until you comprehend all of the expenses involved.

    Today there are a variety of good strategies for funding home improvements on reasonable terms. What kind of loan is best for you depends mostly on the amount of cash you need to obtain.

    The Title I Property Improvement Loan Program

    The answer could be an FHA Title I loan if the equity in your house is limited. Banks and other qualified loan providers make these loans from their own funds, and FHA guarantees the lender against a possible loss. This loan insurance coverage program is licensed by Title I of the National Housing Act.

    FHA-insured Title I loans might be utilized for any improvements that will make your house basically more useful and habitable. You can use them even for dishwashers, fridges, freezers, and ovens that are constructed into your house and not free-standing. You can not utilize them for particular luxury-type items such as swimming pools or outdoor fireplaces, or to spend for work currently done.

    Title I loans can also be utilized to make enhancements for accessibility to a disabled person such as renovating cooking areas and baths for wheelchair gain access to, decreasing kitchen area cabinets, installing wider doors and exterior ramps, etc. Another use is energy conserving improvements or solar energy systems.

    Improvements can be managed on a do-it-yourself basis or through a specialist or dealership. Your loan can be made use of to spend for the contractor’s products and labor. If you do the work yourself, just the cost of products could be financed.

    Some of the advantages of the Title I loan insurance program are:

    • You do not need to live in any specific location to get one of these loans.
    • You hardly ever need any security for loans under $7,500 besides your signature on the note, and you don’t require a cosigner.
    • You do not need to disrupt any mortgage or deed of trust you could have on your house.
    • To obtain a loan, you only have to possess the home or have a long-lasting lease on it; fill out a loan application that shows you are an excellent credit danger; and carry out a note accepting pay back the loan.
    • Your loan can cover architectural and engineering costs, building permit charges, title assessment costs, appraisal costs, and inspection fees.
    • You are not hindered by a great deal of bureaucracy. Typically just the lender has to accept your loan, and can provide you a response in a few days. When the work is finished, you will have to furnish the loan provider with a completion certificate.
    • You get some protection from the incorrect type of dealer, because FHA requires that any dealership who organizes a loan for you should initially be approved by the loan provider.

    Title I Property Improvement Loan Program Maximum Loan Amounts and Terms

    HUD/FHA does not set the rate of interest. Rate of interest are worked out in between the borrower and the loan provider.

    The maximum quantity for a Single Family home improvement loan for the change, repair or enhancement of an existing single household structure is $25,000 and the optimum term is 20 years.

    The optimum quantity for a home improvement loan for the alteration, maintenance and repair or enhancement of a Manufactured (Mobile) Home that qualifies as real home is $25,090 and the maximum term is 15 years.

    The optimum quantity for a home enhancement loan for the modification, repair work, or improvement of an existing Manufactured (Mobile) Home classified as Personal Property is $7,500 and the maximum term is 12 years.

    The optimum quantity for a Multifamily Property Improvement loan for the alteration, repair, enhancement or conversion of an existing structure used or to be used as a home for 2 or more households is $60,000, but not more than $12,000 per home system and the optimum term is 15 years.

    The maximum amount for a Nonresidential Property Improvement loan for the building of a brand-new nonresidential structure, or the change, repair, or enhancement of an existing nonresidential structure is $25,000 and the optimum term is 20 years.

    Discovering a Title I Lender

    To find an FHA-approved lender in your area, call HUD’s Customer Service Center toll-free: (800) 767-7468 (TTY: (800) 877-8339) for a list of loan providers in your state.

    Problems about service provider fraud under the Title I program can be made by calling toll-free: (800) 569-4287.

    Equal Opportunity in Housing

    The Fair Housing Act prohibits discrimination in housing and relevant deals– consisting of home loans and house enhancement loans. In addition, loaning choices may not be based on the race, color, sex, faith, national origin, domestic status or disabilities of persons associated with the borrower or with the area surrounding the property.