How to Create Your Own HGTV Home (No Witch Required)

It doesn't take magic to expand your home ownership opportunities or the famous Bewitched witch twitch to conjure up tens of thousands of extra dollars. What can one mere mortal do? It all starts withIt doesn't take magic to expand your home ownership opportunities or the famous Bewitched witch twitch to conjure up tens of thousands of extra dollars.What can one mere mortal do?It all starts with making things happen. Hold onto your cash and create the house you really want, with a 203K loan. This loan is a Federal Housing Administration's (FHA) product, a government program that grants loans to buyers who want to buy and fix up their homes. If you don't have the cash to fund a renovation, or don't want to take out a home equity loan to fund repairs, this loan is for you. It's a way to roll the mortgage to purchase a home as well as the renovation costs into one single loan.First, apply for the loan. What kind of buyer is eligible? According to the FHA, anyone who can make the monthly mortgage payments is eligible to apply for a 203K loan. You must be ready to live there, although a portion can be rented. Second, find a lender who is experienced with 203K mortgages (http://www.hud.gov/ll/code/llslcrit.cfm). Even though it's a super safe 30-year fixed rate loan, there are challenges to the process, including some extra steps (and time) to meet HUD requirements, and fees, and a slightly higher interest rate. If you're in a rush, this loan is not for you.Whether you want to renovate, update or repair, the loan lets you include materials, labor, and 6 months of mortgage payments (placed in an escrow account). Plus you can refinance after you renovate. So don't worry about using up your quota of magical ideas! Decide whether you are financing major renovation (go for the Standard K program for a maximum of 110% of the after improvement value) or smaller repairs and upgrades under $35,000 (go for the 203K streamlined loan). From new construction (1 year old) to tear downs (keeping part of the foundation), moving an existing home, or FHA-approved condos (up to 4 units), there's no end to the warm and fuzzy feelings of making design decisions for your home.As Samantha says: "You see, everything turns out for the best."