Get New Windows in Your House with FHA 203k
Replacing old windows with new, energy efficient windows - or even just updated windows - is typically a high priority for homeowners. Depending on your budget, it may on your wish list or your dream list. Wherever "new windows" sits, we have a financing suggestion for you: FHA 203k. No, it's not a retirement fund. It's a mortgage option backed by FHA to help homeowners or buyers roll the cost of home improvements directly into the same loan that's paying for the house.
As a homeowner, you can refinance and remodel with the FHA 203k. A new home buyer can use the 203k also, buying a house and then paying for upgrades. One of the many projects covered by this financing option is new windows. So if your windows are breezy and thin like Victoria's Secret lingerie, then you may want to get some new windows in before winter.
How much does this cost?
The FHA 203k adds about $6 a month to your house payment for every $1,000 in home improvements you finance. So let's say your mortgage payment is $700 a month right now. Adding a $20,000 new window budget would mean you'd pay about $820 a month into your new mortgage. For a house full of nice, new windows, that's not a bad deal. Of course, if you can pay for that home improvement project with cash or current equity, then you may not need the FHA 203k.
And that's okay. One benefit to the 203k is that you get to amortize the cost of the upgrades into the life of the loan - which makes the monthly cost much lower than a 5-year home equity loan. You also get to claim the interest paid on your taxes since it's now part of your mortgage. That's a better deal than credit cards (the interest rate difference alone is a better deal!) or store credit.
What else can the FHA 203k pay for in my house?
The 203k covers a lot of home upgrades. Some of the few projects it will not cover are luxury items like tennis courts, outdoor barbecue pits or in-ground pools. But here's a short list of a few regular home improvements eligible for FHA 203k financing.
- Minor kitchen remodel (203k Streamline)
- Major kitchen remodel (Full 203k if it includes structural work or exceed $35,000)
- House re-painting
- Carpet, tile, laminate flooring
- New windows
- Build or repair a deck or porch
- Driveway repair
- Basement waterproofing
- Room additions including bathroom (Full 203k)
- Add a second story to your ranch-style home (Full 203k)
- Roof repair
- Gutters & downspouts
Working with a 203k Specialist at AmeriFirst Home Mortgage, you will likely find many more projects eligible for funding through this option. But that short list gives you an idea. So if you're looking to upgrade your windows, you may end up with the means to make a few more home improvements.
Learn more about the FHA 203k at our YouTube page. We've compiled a 203k playlist for you, full of interviews with national Renovation Lending Expert Joe Daly. Click here to watch: FHA 203k Loan playlist
And if you have questions about this mortgage loan option for paying for upgrades to your house, let us know in the comments.
Learn more about paying for home improvements with our free eBook "The Ultimate Guide to Home Improvement Loans" at the button below. You can actually refinance your house into this mortgage, and pay for upgrades like new windows. Get your guide today and get started on your planning!
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