MILLBURN – New Jersey recently marked the second anniversary of Super Storm Sandy, and the federal government has just extended benefits to the storm’s survivors, because the storm’s sting is still being felt by many homeowners. More than 56,000 homes suffered severe damage in the storm, and estimates show that thousands of Garden State homeowners still need to make significant renovations on primary or seasonal homes.
For some households, repairs have been stalled by financing issues. Specifically, homeowners are seeking workable solutions to close the gap between the funds they received from insurers and the state, and the actual cost to repair their damaged homes.
One often overlooked home-financing option is a renovation mortgage. This home loan was introduced in the 1960s by the Department of Housing and Urban Development (HUD) and its Federal Housing Administration (FHA). With one renovation loan, a borrower receives financing to purchase a home or refinance an existing mortgage and fund the repairs, improvement or renovations to that house. The FHA renovation loan, otherwise known as a 203 (k) loan, was originally created to help people reclaim, remodel, and preserve older homes in urban neighborhoods.
Renovation financing makes excellent sense in New Jersey, where many older homes require repair due to age or Sandy or a combination of the two. For example, in Essex County 74 percent of the homes are at least 50 years old, and in Monmouth County more than 70 percent of the housing was built more than three decades ago. Often, these aging houses need updating that ranges from a new roof or heating or cooling systems to complete remodeling of the kitchen, bathrooms, and more.
read more: http://www.mycentraljersey.com/story/money/business/2014/12/31/renovation-mortgages-offer-useful-options/21103659/
