According to the Federal Housing Finance Agency House Price Index (FHFA HPI), home U.S. home prices increased 18.5% year-to-year in 3Q. Florida price increases rose even higher.House prices

Dated: August 19 2019
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In Jupiter, there are a lot of beautiful desirable neighborhoods with older homes that are sorely in need of updating. If you have found a home the right neighborhood for you and your family but it needs to be renovated, there is no reason to shy away from it. If you cannot come up with the cash for needed renovations in addition to a down payment, closing costs, and moving expenses there are a couple of loan options that will help you get the home you want in the area you desire and turn it into your dream home.
With this the FHA 203k program you can combine purchasing and renovation expenses to extend your payments for the renovation over the life of the loan rather than paying a lump sum. Unlike standard mortgage loans, this loan – officially known as the Federal Housing Administration’s 203k Rehabilitation Mortgage Insurance Program – wraps renovation and purchase or renovation and refinancing costs into one mortgage. Borrowers with lower FICO scores and higher debt-to-income ratios can qualify for a 203k loan. However because of the greater risk, FHA comes with an upfront fee of 1.75 percent of the loan amount, wrapped into the total mortgage. That’s $1,750 for every $100,000 borrowed. These loans are more lenient than conventional loans when it comes to qualifying income ad credit scores but the property must be a primary residence, and luxury improvements such as pools cannot be financed. See more about 203k loans here
For borrowers with higher credit scores there is a less costly program called the Fannie Mae Homestyle Renovation Mortgage. It too allows you to wrap the cost of renovation into the loan used to purchase a home. One of the main cost savings is the upfront mortgage insurance premium. The HomeStyle Renovation Mortgage does not require one. You can put as little as five percent down with this loan. However, any downpayment below 20 percent will require private mortgage insurance (PMI) which may be less than the FHA mortgage insurance premium (MIP). PMI varies based on downpayment and credit score. FHA MIP though, does not get cheaper with higher credit scores and must be paid for the duration of the loan whereas HomeStyle PMI is dropped once you’ve reached 22 percent equity. Another advantage of a HomeStyle Mortgage over the FHA 203k is there are no restrictions on property occupancy status. You can finance a primary residence, rental property, or vacation home. See more about the Homestyle Renovation Mortgage.
If you are an owner of a home that isn't selling because it needs updating one of these programs can also help. Many buyers are looking for move-in-ready homes and will pay a premium for one. Before you charge ahead and start renovating see this article for the updates that will get you the best return on investment.
Your lender can help you choose which program will best suit your needs. FHA 203k vs Fannie Mae Homestyle Check out Lending Tree's Complete Guide See what Capital Partners offers home buyers and owner.
According to the Federal Housing Finance Agency House Price Index (FHFA HPI), home U.S. home prices increased 18.5% year-to-year in 3Q. Florida price increases rose even higher.House prices
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... it needs a new roof? ... or the kitchen needs updating? ... or it won't pass inspection?In Jupiter, there are a lot of beautiful desirable neighborhoods with older homes that are sorely in need