Choosing A Federal Home Improvement Loan Program
Choosing a federal home improvement loan program is a wise choice since it gives the individual the assurance that the loan will not fail since it is federally insured. There are many different federal home improvement loan programs on the market today which can offer this type of security for the homeowners. There are FHA home improvement loans that are specifically used for certain types of projects as well as more general loans on the market today. The federal home improvement loan programs have increased with the increase in disaster situations in this country so that people can get the help that they need for their homes.
Types of Loans
For those who have been in a disaster situation, there is a federal home improvement loan that is called the Section 203h Insured Mortgage for Disaster Victims. This type of a mortgage is designed for those people who have been in a Presidentially designated disaster area and have lost their home due to the disaster, or have had their home substantially damaged by the disaster. These mortgages are very beneficial to the disaster victims since they do not require a down payment for the loan and the loan is eligible for one hundred percent financing. This helps these individuals to get back on their feet again, rebuilding their homes and getting back to life as they used to know it.
Another type of federal home improvement loan program on the market today is the Energy-Efficient Mortgage Program so that individuals can buy or build a home that is energy efficient and helpful to the environment. There are also loans that are available for Native Americans where there are reservation and restricted land rulings that have to be taken into consideration as well as the typical loan specifications. This type of federal home improvement loan program is called the Section 248 Indian Reservations and Other Restricted Lands. For those that are interested in doing home improvement to a home that they are buying that needs a lot of fixing up before it is even livable. These types of loans are even more difficult to find because most lenders do not want to loan money until the renovations are completed, yet the homeowner cannot make the renovations until the home is purchased. The HUD based loans will circumvent this by working with the buyer to put the renovation costs and the sale price into one loan with stipulations on the renovations that have to be done to fulfill the contract of the loan.
