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Did you know there are California home loans that will help you not just to buy a home, but also pay for renovations? If you’re considering buying a house that needs some work, sometimes called a “fixer-upper,” or a “handy-mans special”, or a property that needs “TLC” aka “Tender Loving Care”, you do have options to pay for the work that it will need.

What Type of Home Renovation Loans Are There?

The best-known type of home renovation loan is the FHA 203(k) loan. This loan comes in two versions: limited and standard. The limited FHA 203(k) loan will pay for up to $35,000 in renovations, as long as they’re not considered to be luxuries by the Federal Housing Administration (FHA). A new bathroom isn’t a luxury, but a new swimming pool would be, according to FHA guidelines.

The standard FHA 203(k) loan will pay for renovations over $35,000. In order to qualify for this loan, you will need to work with a HUD-certified consultant who will get bids and oversee inspections of the work. Both of the FHA 203(k) loans will pay for renovations on your primary residence. They aren’t available for second homes or investment properties.

Other home renovation loans include FannieMae’s HomeStyle loan and Freddie Mac’s CHOICE Renovation loan. These loans require higher credit scores than an FHA 203(k) loan. You could potentially qualify for an FHA 203(k) loan with a credit score as low as 500 to 520, but you will need to make a down payment of at least 10%.

Don’t Let a “Fixer-Upper” Stop You From Buying the Home You Want​

If you find a home that you can afford in the neighborhood you want, but it needs upgrading or repairs, don’t pass it by until you’ve considered a home renovation loan like an FHA 203(k) loan. There are many California home mortgages that can pay for the purchase and renovations that can help you to move into the neighborhood you want to live in and have a modernized liveable and enjoyable home with the upgrades/renovations and repairs, you want and need. These loans allow you to finance 100% of the renovation rehab costs.  All those costs are rolled into the loan.  You just pay your normal down payment on the purchase, the rest of the costs including renovation, permits, and holding costs during the renovation period are often times covered by the loan. So you start making payments when your home is move-in ready. Contact Us here at California Platinum Loans to see how we can make your dreams of buying a fixer-upper with a low down payment a reality today!

Source

https://themortgagereports.com/38797/home-improvement-loans-which-is-best-for-you

Before you compare mortgage lenders for your high-value property, whether it be purchase or refinance, keep in mind that much of the financial advice you’ll see online is geared toward typical 30-year fixed rate home loans. That advice is geared toward loan sizes a fraction of the value compared to super jumbo mortgages of up to $15 million or more. Super jumbo home loans, along with regular jumbo loans that exceed county FHFA loan limits, have underwriting criteria that differ from conventional mortgages. Practically none of the advice you’ll see for getting a conventional loan that conforms to Fannie Mae or Freddie Mac guidelines will be useful for you to get a mortgage up to $15 million.

Flexible Underwriting Standards

You’ll find flexible underwriting standards with super jumbo home loans. You don’t even need to be a citizen or a resident. Likewise, you can also qualify with alternative income documentation or assets. Furthermore, you can use business income statements and profit-and-loss statements.

Differing Down Payment Requirements

You can find super jumbo home mortgages that require differing levels of down payment. You may be able to find jumbo mortgage loans with a down payment of 5% or 10%. Other programs may require higher down payments, but loan terms in the super jumbo environment can also be flexible. You may be able to structure a loan up to $15 million that perfectly fits your financial goals, whether you’ll be selling another property or financing your purchase through other funds and assets, including but not limited to businesses. A qualified Independent Mortgage Broker may have the specialized niche loan product or be able to design one around your unique situation, which could in turn enable you to make that mega million dollar property purchase you previously thought not possible.

Fixed Rate vs. Adjustable Rate Super Jumbo Mortgages

You can find interest-only mortgages, or 15-year fixed or 30-year fixed super jumbo mortgages up to $15 million. Adjustable rate mortgages with varying terms are also available in super jumbo mortgages. You may find the 5/1 ARMS, 7/1 ARMS, and 10/1 ARMS more competitive and in line with your overall financial needs. Or the interest-only options a better overall fit for your global debt service cash flow objectives.

You don’t need to fit into the standard conventional mortgage “box” if you want to buy a property worth $15 million or more. Working with a knowledgeable independent mortgage broker such as California Platinum Loans, you can evaluate a variety of pathways to getting the super jumbo mortgage you want and need. Think of California Platinum Loans like a jumbo mortgage concierge, who can make your path toward the property and home loan you desire as smooth as possible.  Get in touch with us to learn more about how we can make that happen for you today!

Source

https://www.investopedia.com/mortgage/mortgage-rates/fixed-versus-adjustable-rate/

Have you been thinking about a HELOC, aka a home equity line of credit? With favorable 30 year refinance rates and California home loans offering many options for refinancing or using the equity in your home, you’ve got a lot of choices to meet your financial goals. Many people choose a HELOC to pay off high-interest credit card debt. This is just one use of a HELOC that can meet your financial needs.

Why choose a HELOC instead of a refinance or traditional second mortgage?

A home equity line of credit (HELOC) is different from a home equity loan or a home mortgage refinance. With a home equity line of credit, you get credit available for your use as needed. Once you use the credit you pay back the funds you use over time.

The minimum payments required usually interest only. So you can pay for home improvements, college tuition, or even a down payment on a vacation home. Then you have the flexibility and financial breathing room to pay the HELOC money back over time in different amounts. Your HELOC will have a variable and adjustable interest rate, similar to an adjustable-rate mortgage (ARM).

If you want a line of credit with interest rates that are usually much lower than unsecured credit cards, a HELOC may be the answer. HELOCs offer access to funds that you can borrow, use, and repay on a flexible schedule. Most people choose a HELOC because it offers flexibility and availability, along with lower monthly payments, and lower interest rates.

Is the interest on a HELOC tax-deductible?

If you use your HELOC to improve your home or make home repairs, yes it may be tax-deductible.  However, you need to check with a licensed CPA or tax attorney regarding your specific tax situation. If you use the HELOC for other purposes, it probably won’t be tax-deductible. You should consult a tax advisor before using a HELOC to determine what you can and cannot legally deduct on your taxes.

What financial situations aren’t right for a HELOC and which ones are?

A home equity line of credit is secured by the equity in your home. It’s a form of a second mortgage. If you’re struggling to pay your bills, a HELOC isn’t a smart financial choice.

If you’re financially stable and want flexibility with access to credit at lower interest rates, a HELOC can be a wise financial choice. One of the best reasons to work with an independent mortgage broker is their ability to compare different HELOC lenders and their terms and conditions for you. An Independent Mortgage Brokers can then advise you on your options. Typically your monthly payments will be a lot lower on HELOC drawn funds.  This is due to the required minimum monthly payments typically being interest only. You can use a HELOC to remodel your home, make improvements, or use the money flexibly to meet your other financial personal or business, and family goals.

Source

https://www.foxbusiness.com/personal-finance/heloc-interest-tax-deductible