Need To Know The Differences (advantages And Disadvantages) Of A 203k Loan Vs A Title 1 Loan?
I am looking to remodel my kitchen, I have an FHA Loan and my Mtg Broker says both are an option for us. I am looking to NOT put my own $$ up front on the project.
Any answers, opinions and/or advise is appreciated!
Categories: Kitchen Remodeling 203k, Advantages, Differences, Disadvantages, Know, Loan, Need, Title
The 203k loan allows you to roll the pre-estimated costs of renovations into a mortgage. You have to go this route when a mortgage is first put into place; can’t do it after the fact. Add-on amount is limited to $35K The loan is insured by the FHA/HUD; lots of paperwork.
A Title 1 loan is a renovation loan that you can take out at any time. The amount is limited to $25K. The loan is insured by HUD; lots of paperwork. There are also restrictions on who can offer these loans.