Having to raise money for your home improvement project? This article will cover the best types of mortgages for a home renovation project.
If you're thinking about undertaking a home renovation mortgage , there are a few different types of mortgages to consider. Here's a breakdown of the three most common ones:
FHA 203k – This program is designed for homeowners who want to make cosmetic and/or repair improvements to their homes. Your mortgage lender must approve your application, and you must meet basic eligibility requirements, including owning your home free and clear.
Conventional – A conventional mortgage allows you to borrow a fixed amount of money to finance your home improvement project, with a variable interest rate that can go up or down depending on the market. You must have a good credit score and be able to afford the payments based on your monthly income.
VA – If you're eligible for military benefits, you may be able to get a VA loan for your home improvement project. VA loans have some special eligibility requirements, including being able to provide documentation that shows the necessary financial hardship caused by the military service.
When it comes to home renovation, there are a lot of options available to you. If you are planning on renovating your entire home or just upgrading a few pieces, consult with a mortgage broker to find out which type of mortgage is best for you.