The End

Finally, my last installment on the road to Renovation Lending.

Here are the various programs offered for Renovation Lending:

FHA 203(k)
FHA 203(k) Streamline
FNMA (Fannie Mae) Homestyle
FNMA Community Homestyle
Construction to Perm/One time Close Renovation Loan

In an effort to cut short the suffering my readers have endured over the 203(k), I will give only sight overviews of a couple of the 203(k) mortgage programs.

The first one, a first time homebuyer may have accidently come across it and not fully understood the purpose of it. (Unfortunately, there are lenders out there who do not speak in "people".) The HUD FHA 203(k) (almost sounds like a 1940's phone number) covers the mortgage plus there has to be a minimum of $5,000 in repairs. These repairs are required to eliminate health and safety issues such as roofing, energy conservation, site improvement and handicap accessibility. These are not decorating dollars.

The 203(k) Streamline allows up to $35,000 for repairs and upgrades. It is "Streamline" because it is "streamlined". No consultant needed, no structural repairs, no financing of mortgage payments which all results in lower fees. This mortgage would perhaps serve the non novice when it comes to home repairs and remodeling.

In all of these mortgages, self-help, or sweat-equity, may be discouraged but not entirely ruled out. If you can do the work and can demonstrate in some way that you indeed can do the work, then you might be able to stretch your dollars a bit further.

Well, I think I have totally exhausted this topic. Well, I guess not totally. There is obviously a lot more to know about this topic which is why I say, don't take my word for it. Do some legwork, call a bunch of lenders and get as much info as possible. If someone tells you there is no such thing as getting money based on what the home will be worth in the future, just smile knowingly and head for the door.

Countrywide Home Loans offers this type of mortgage, but I am sure they are not the only ones. Please do not let Countrywide's checkered past sway you too much. This is not preditory lending. But if a lender tries to pressure you into borrowing more money than you know you can afford, just smile knowingly and head for the door.

Now, go out there and RENOVATE!

Th--th--- th---That's all folks!