Can a Refinance Mortgage Pay for Home Improvements?

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Anyone looking to make home improvements to their house is more than likely considering ways to finance the work. In the current housing market with low home values, a home equity line of credit (HELOC) is probably out for most of us. If you have equity and can use it, this could be a great option for you. Ask your bank that has your mortgage or your local bank if it's an option. But if you're like the rest of us, you may need to consider a refinance mortgage to pay for home improvements you want to make.

Make a list of the upgrades you want to make to your home. Some of the projects you'd love to do may end up lining up with "HUD minimum property standards." This means they're required for an FHA loan, and you can roll them into the FHA 203k home improvement loan. The list below may not be all inclusive, but it includes a lot of ideas for projects that you may want to fund with a refinance mortgage. Plus you can see the full list here: List of 203k Streamline Projects

• Peeling or chipping paint
• Any signs of mold or mildew 
• Missing electrical fixtures, switches/outlets and switch/outlet plates 
• Missing flooring, including missing tiles or flooring that is in disrepair or heavily soiled
• Approximate remaining life of the roof (there should be at 2 least years)
• Water stains on walls and ceilings
• Foundation issues– if present, you will need to use the 203k Full renovation program
• Missing/non functioning gutters and/or downspouts
• Missing kitchen fixtures and/or cabinets 
• Damage to the exterior of home including soffit, fascia and siding
• Dampness or water in basement
• Signs of termite damage
• Exposed wiring

Learn all about how a refinance mortgage can help fund your upgrades and spring projects with our free eBook. Download "The Complete Guide to Spring Home Improvement Financing" at the button below. It's a short read with ideas for the do-it-yourself homeowner and the "need help" projects. this way you can get busy in your spring home improvement projects and enjoy them this summer!

(house photo: Flickr user Amy Spreitzer Windsor)