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Air Conditioning and Heating Loans are loans you can get in order to help pay the costs of installing and repairing air conditioning and heating systems. While there are no loans specifically geared for air conditioning or heating, you can cover the costs using home improvement loans. There are several different types of improvement loans available. Each loan comes with its own terms and conditions

FHA Streamlined 203K Loan

One of the more popular options is a loan offered by the Federal Housing Administration (FHA). It is designed to encourage home buyers to buy houses that require a significant amount of repairs. FHA 203K loans cover the cost of repairs like air conditioning and heating systems. The loan program also allows a homeowner to replace their existing unit for an energy-efficient one, as long as the combined costs are no less than $35,000. The loan offers both adjustable and fixed-rate mortgages. The financed amount is added to the mortgage loan amount.

In order to qualify for an FHA Streamlined 203K loan, you must occupy the home you live in and it cannot be empty for more than 30 days. All repairs must be completed by certified professionals and the entire process must be completed within a six month range.

FHA Title 1 Home Improvement Loans

Title I loans are issued by private companies and insured by the FHA. In order to qualify, you must prove that the repairs or upgrades you want to make will either improve your home’s value or make it more energy-efficient. You may borrow up to $25,000 if it’s a single family home or up to $12,000 per unit if it’s a multi-unit property. The maximum number of units allowed with this finance type is four. The term for this loan is 240 months for a single-family structure and 180 months for a multi-family structure. Depending on the nature and extent of the renovations, the loan may be tax-deductible.

Some important items to know to finance your are:

  1. How much money do you really need?
  2. Do you know your exact FICO scores?
  3. How do you plan to repay the loan?
  4. Who is going to borrow the money? You personally or another legal entity?
  5. What assets can you pledge to secure your loan?

Make sure you know you are pre-qualified before you apply. Our free business capital search engine will allow you to see the funding programs and lenders that are available to you and then you choose those you wish to apply for.

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