(Newswire.net — April 26, 2013) West Haven, CT — It’s no secret the recent housing crunch has put many homeowners in a tough situation when it comes to their current mortgage. Even though it’s currently a buyer’s market and interest rates are at all-time low, many people are not able to take advantage of this due to a current mortgage with little to no equity or even slightly upside down. Having to sell their current home in order to take advantage of this buyer’s market and low interest rates is just not economically feasible in their current mortgage situation.
For this reason people are now staying put and renovating their current home to accommodate for expanding families and turning it into their dream home. Where many are finding a sticking point is by trying to use conventional refinancing options. Banks are very conservative right now and will not refinance a mortgage without a large cushion in the loan-to-value. Even if the renovation will add to the value of the home most banks do not take that into consideration unless, again, there is a large LTV cushion.
The solution for this is a FHA 203k loan. This is a loan backed by the Federal Housing Administration which will fund these seemingly risky loans conventional banks will not. Ken Carney, owner of Baybrook Remodelers, which is an approved contractor to work with a 203k loan in Connecticut, says “We have seen many homeowners who thought they had exhausted all options and would not be able to do their renovation, get approved.”
One thing to note, is not all contractors are approved to work with a FHA 203k loan in Connecticut. Additionally, once a loan is approved an inspector is assigned to the loan and all payments must be preapproved by the inspector before any funds are released.
This ensures the money lent will go to the actual project. Ken went on to say “These inspectors are very beneficial to a homeowner, they not only oversee the progress of the job and dictate payments, but also confirm all necessary permits are pulled.” He continued with “Only then does a builder get paid, which protects a homeowner from paying the builder to much up front and possibly getting themselves in a bind.”
Baybrook Remodelers reviews each situation with an expert in 203k loans in Connecticut and works closely with homeowners to get them the loan they need for their dream renovation. For more detailed information on the 203k loan for Connecticut residences click this link to go to the HUD.GOV 203k page.
About Baybrook Remodelers:
Baybrook Remodelers is a full service remodeling and home improvement contractor in Connecticut. They are approved to work on projects financed by a 203k loan in Ct. With showrooms in West Haven, CT and Fairfield, CT.
For more information contact Ken Carney at 203-937-6400 or visit their website at www.BaybrookRemodelers.com
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Contact Info
Baybrook Remodelers, Inc.
203-937-6400
www.baybrookremodelers.com
Main Office
824 Boston Post Rd.
West Haven, CT 06516
Satellite office (by appointment only)
1700 Post Rd. (2nd Floor)
Fairfield, CT 06824
Author:
Google+ — Brian Kiernan G+