Due to Hurricane Sandy, floods have engulfed a number of parts of New York, including Long Island, causing extensive property damages. If you are among the regrettable ones whose home got damaged by flood water, you're probably trying to determine the best ways to restore your home back in good shape. To do this, the first thing you should do is acquire a 203k loan.
What Is a 203k Loan?
This is a loan offered by the Federal Housing Administration (FHA) for individuals who wish to recondition or repair a broken residence so it can be suitable for habitation. The FHA 203k home mortgage features the costs for both products and labor. In other cases, it includes furnishings, components, as well as devices.
How Do I Get a FHA 203k Home loan?
Like other loans, applying for this type of loan has a certain set of requirements. One would have to demonstrate task reliability for at least 2 years by providing evidence of income. However, this does not indicate those who are independent are automatically disqualified from getting this loan, as they can still obtain a loan by submitting their federal tax return for the last 2 years.
What Are the Various Kinds of FHA 203k Home Loans?
There are two major kinds of FHA 203k mortgages: regular and structured. With routine loans, the max amount is figured out by the as-is value of your home, plus rehabilitation prices or 110 percent of the anticipated value of the property after rehab, whichever is less. Meanwhile, the structured group primarily applies to scenarios where property owners opt to purchase existing residences instead of having theirs fixed or renovated.
What Other Projects Can I use the FHA 203k Home loan for?
If your residence has remained undamaged in spite of Typhoon Sandy, you can still obtain the FHA 203k loan and begin renovating or renovation jobs, which can help support your residence more in the face of natural catastrophes. This could feature new roof, exterior siding installation, or re-flooring. It can additionally feature enhancements such as a patio or deck additions.
How Do I Ensure that my FHA 203k Mortgage Is Put to Good Use?
As the loan consists of both material and labor costs, never attempt to do home improvement projects by yourself. Instead, go with skilled Long Island contractors who can deliver high quality work with professionalism and sincerity. For more information, visit forbes.com/2010/06/18/fha-home-repair-loan-personal-finance-203k.html.
Recover from a Recent Disaster Using a 203k Loan