Home Improvement

Sun West Mortgage offers several loan programs to help you finance your home improvements.  One of these programs is the 203K Improvement Loans.  If you have equity in your home, you can borrow against it for home improvement.  Refer to the programs listed under Second Trust Deeds for more information on other equity loans.

SWMC also offers mortgage financing FHA 203k Improvement Loans to fix up your home, whether you are purchasing or refinancing, with one mortgage.  Most mortgage financing plans provide only permanent financing.  That is, you will have to first obtain financing to purchase the dwelling, additional financing to do the rehabilitation construction, and finally a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage.  Often these types of financing involve relatively high interest rates and relatively short amortization periods.

But FHA's 203(k) is truly innovative and different.  Under this program, you can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property and at low rates.  To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed.

The 203(k) loan can be used with 1-4 family dwellings, condominiums and PUD Homes that require a minimum of $5,000 in repairs.  Co-ops are not eligible.  203(k) cannot be used on non-owner occupied properties.

The process is simple.  Your first step should be to pre-qualify for the loan.  Or if you prefer, you may call at (800)453-7884 and ask to speak to a "Loan Agent".  We will ask you some basic questions and, most of the time, we will be able to give you a tentative pre-approval at the end of the telephone conversation.

Once you have pre-qualified for the loan, we will meet with you to take a loan application.  A HUD (Department of Housing and Urban Development) approved consultant will call you to set up an appointment with you to visit the home.  The consultant and you will work together to make a list of needed improvements as well as anything else that may be on your "wish" list, including dishwasher and refrigerator.  (Some improvements are not eligible for financing such as swimming pools.) The consultant will assign an estimated cost for each improvement.  The only limit to the amount of improvement is that the property should appraise at a value that will give you enough cash to make the improvements.

Once the loan closes, you have 30 days to start the improvement process and six months to finish the improvements.  You must contact the loan servicer of your loan if you encounter any problems in meeting these required time frames.