FHA 203k Refinance Loan For Existing Homeowners

FHA 203k loan is not just for purchase transactions. Homeowners can consolidate their existing mortgage loan(s) and the cost of the home renovation project into one new loan up to 97.75% of the "after-completed" value of the house. The "after-completed" value of the house is the anticipated value of the house that takes into consideration all of the improvements that will be made to the house through the FHA 203k refinance loan renovation project. By using the "after-completed" value of the house homeowners will be eligible for a larger renovation budget than offered through a traditional mortgage loan or Home Equity Line of Credit.

Traditional loan programs will use the house value without any consideration for anticipated improvements to establish the maximum loan to value ratio (LTV). Based on today's ultra-conservative lending standards the maximum LTV allowed for a "cash-out" financing transaction based on the major loans programs currently available are as follows:

The FHA 203k refinance loan program allows the homeowner to borrow 97.75% of the after completed value to make improvements to the property. Thus, the FHA 203k refinance loan offers homeowners the greatest borrowing capacity of any loan program that is currently available.

Benefits to the FHA 203k refinance loan program extend beyond having the highest LTV of any current available loan program. Other benefits include:

Homeowners can determine their loan parameters by using the webs only FHA 203k Refinance Loan Calculator. This calculator will help the homeowner determine:

To learn more about your financing options through the FHA 203k Renovation Loan Program complete a contact form or call (866) 305-7808 to speak to your Nationwide FHA 203k Renovation Loan Experts.

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