Things You Should Know About Renovation Loans

Just like our bodies need constant attention in the form of exercise, nutrition and medical care to keep them in shape, so do our homes. After every couple of years, our homes need our attention and renovation is a must to keep them in the best possible condition.

Not all of us have funds in savings that we can easily spend on home renovation. Once you start renovation, there are millions of tiny things that spring up and need your attention, and automatically you tend to cross the budget limit that you had in mind.

This interesting post by Lauren Bowling gives some personal insight into utilizing 203k Home Renovation Loan:

My Experience Using a 203k Home Renovation Loan

Lauren Bowling
06/02/2016 02:34 pm ET | Updated Jun 02, 2016

In 2013, at the age of 26, I bought my first home. Long time readers of my blog, L Bee and the Money Tree, will know the successes and failures of this financial move, but the skinny is that I leveraged down payment assistance to get a great deal… the only downside was that it needed a lot of work.

Renovating my first home was a difficult process: I had a falling out with my contractor; I discussed my mistakes and home renovation money-related blunders in this post and this one, but I haven’t discussed where all of the money to completely renovate a home came from.

Read the full story here..

But 203k Home Renovation Loan is not the only option. You can also go for other options available; among these HomeStyle Renovation Loan Program is a popular choice.

Here is a piece of content by Chad Schernikau that gives some valuable insight into using this latter option:

HomeStyle Renovation Loan Program

For our renovation we chose the Homestyle Renovation Loan Program. Renovation loans are very complex and time consuming but well worth it. Before I talk about why we chose it and what we had to do for the loan, lets talk about the two types and the basic guidelines for the loan.

Two Types of Homestyle Renovation Loans

HomeReady/Homestyle Renovation Loan – these two are used together and are used for principle residences.
Homestyle Renovation Loan – this one is used by itself and is used for second homes and investment properties.

Continue reading the full story here..

There are a number of factors that become decisive when you are choosing the loan program that you want to opt for. So, take your time and do proper homework before you make a final choice.

The following video by AmeriFirst Home Mortgage will also help you understand what is meant by the popular term homestyle renovation loan? So, take a look:

Now you should be in a better position to compare your options in terms of FHA 203k and HomeStyle Renovation Loan. So, make a wise choice and start living in a better and improved home!