Funding for updating house
The most you can borrow is 110% of what an appraiser estimates it will be worth after renovations, or the cost of the home plus the estimated renovation cost, whichever is less, minus your down payment. The maximum also must fall below the FHA mortgage limit for the area — 4,515 for single-family homes in most parts of the country and up to 9,650 in high-cost areas.
This type of financing is ideal for borrowers who either have little money for a down payment or who have an average or slightly below-average credit score, says Bruce Ailion, a broker with RE/MAX Town and Country serving greater Atlanta.The limited 203(k) mortgage is for minor remodeling projects that don't require structural modifications such as adding rooms.You can use one of these loans to repair or replace: It can also be used to remodel your kitchen and get new appliances, to finish your basement, to paint your home and to add insulation and weather-stripping, among many other possibilities."The insurance cannot be removed, even when there is more equity in the property," Parsons says.You can drop private mortgage insurance on a conventional loan when equity in the home reaches 20%.
Draft proofing, loft insulation, floor insulation and even internal insulation of solid walls can be achieved even if you don't qualify for a grant. The Home Energy Scotland scheme is available for Scottish residential homes (including mobile homes), and aims to help make heating more affordable by making homes more energy efficient.