South Central Bank is working with contractors in order to give back to homeowners in the ways of affordable financing for renovation projects in places such as Minnesota, Illinois, Kansas, Michigan, Ohio, Pennsylvania, Kentucky and a few other states along the Midwest and Mid-Atlantic region. The bank is working with the GHA Title One program and other government programs to ensure that homeowners are able to afford rebuilding projects during a difficult housing market.
The FHA Title One program insures loans to finance small to moderate renovation projects. The program can insure loans for up to 20 years on single or multifamily properties. However, the maximum loan amount for a single-family home is limited to $25,000. For improving a multi-family structure, the maximum loan amount is $12,000 per family unit, not allowed to exceed $60,000. Since these are fixed-rate loans, lenders are also able to charge interest at market rates. At a time when some banks have taken advantage and charged extremely high interest, South Central Bank just wants to help struggling contractors and homeowners make improvements to their homes.
South Central Bank is working with contractors in order to give long term financing without any kind of "teaser rates." These are actually lower than the credit card rates offered to contractors through financing options. Since the loan terms include long term repayment plans, the fixed monthly payment can be lower than a car payment, according to South Central bank representatives. This is allowing many homeowners to afford remodeling projects and stay in their new and improved homes.
Customers should be wary of high interest or short repayment plans, which may have higher interest rates if you go past the repayment plan period. With the FHA Title One loans, contractors as well as homeowners can receive financing for home improvement needs, thus making it a very plausible solution if your house has needs for repair. In addition, there are several projects, cheap repair how-tos and DIY improvement projects that you can find on RemodelingCentral.com's blog or article database to make costs that much cheaper.