Standard 203k • For major renovations (over $35,000 or involving structure) • Structural work, room additions, foundation repair, landscaping allowed • Must use an FHA-approved 203(k) consultant • More paperwork and longer timeline Eligible Projects • Roof or gutter replacement • Electrical and plumbing upgrades • Kitchen and bathroom remodels • Energy efficiency improvements • Lead paint or asbestos removal • Accessibility improvements (e.g., wheelchair ramps) HELOCs and HELOANS Home equity is the difference between your home’s current appraised value and the total amount you owe on your mortgage—and any other loans secured by the property, such as a home equity loan (HELOAN) or home equity line of credit (HELOC). Because these loans are typically added on top of an existing mortgage, they are often referred to as “second mortgages".
HELOC (Home Equity Line of Credit)
A HELOC is a revolving line of credit that you can borrow from as needed during the draw period, which can last up to 10 years. During this time, it functions like a credit card secured by the value of your home. You only pay interest (usually variable) on the amount you actually use. After the draw period ends, the loan enters the repayment period, during which you must start paying back both principal and interest, on a fixed schedule until the loan is fully paid off.
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