FHA 203(k) Rehabilitation Loan Planning
February 17, 2023
If you are interested in buying a fixer-upper home or refinancing your current home with an FHA 203(k) Rehabilitation Mortgage, there are important steps to take in the planning stages to help you get off to the right start.
Research Local Contractors
Many don’t want to do the work themselves, others may wish to do so but aren’t allowed due to lender standards.
That’s why you’ll need to have a list of contractors to research in the planning stages. Finding the right builder is like finding the right doctor. It takes some trial and error, but if you are determined, you’ll find the resources you need. Start looking for contractors early.
What do you want to know about a contractor before you commit? You’ll want to read online reviews, testimonials, etc. You’ll want to see pictures of the contractor’s previous work, maybe do a model home tour, or even work off a word-of-mouth referral.
Consider Spending More on Crucial Parts of the Home
Your home renovation budget includes a variety of choices including whether to go with a midrange or upscale version of siding, appliances, individual room remodeling, etc. It is smart to invest more in the basic infrastructure of the home.
For example, spending more money on durable siding makes more sense than getting the “budget” version because you will likely be forced to replace the cheaper version sooner.
Looking ahead to your down-the-road expenses pays off if you choose the more costly-but-more-durable option for certain areas in the home.
Examine Your Wiring and Plumbing
Buying an older fixer-upper or renovating an older home likely means taking a hard look at features like your plumbing, wiring, even your HVAC system. How much remaining life do these features have and should you invest more in these decidedly essential, but non-cosmetic upgrades?
It’s always smarter to upgrade if it means avoiding more costly repairs down the line. An old plumbing or wiring setup may work fine. Until it doesn’t. Anticipating the sudden death of a crucial part of the home can help you save money in the future.
Consider Your Current Design vs. a New One
What do we mean by this? Basically looking at the sections of your home that may be enhanced with a bit of expansion. Do you have limited closet space and find storage to be an issue? Your home renovations could include plans to expand your storage options whether that’s by adding or expanding closets or installing modular storage solutions to help.
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RELATED VIDEOS:
Annual Income Requirements for FHA Loans
Good Credit History Helps Get FHA Loans
Stay Informed About Your Mortgage Closing Costs
Research Local Contractors
Many don’t want to do the work themselves, others may wish to do so but aren’t allowed due to lender standards.
That’s why you’ll need to have a list of contractors to research in the planning stages. Finding the right builder is like finding the right doctor. It takes some trial and error, but if you are determined, you’ll find the resources you need. Start looking for contractors early.
What do you want to know about a contractor before you commit? You’ll want to read online reviews, testimonials, etc. You’ll want to see pictures of the contractor’s previous work, maybe do a model home tour, or even work off a word-of-mouth referral.
Consider Spending More on Crucial Parts of the Home
Your home renovation budget includes a variety of choices including whether to go with a midrange or upscale version of siding, appliances, individual room remodeling, etc. It is smart to invest more in the basic infrastructure of the home.
For example, spending more money on durable siding makes more sense than getting the “budget” version because you will likely be forced to replace the cheaper version sooner.
Looking ahead to your down-the-road expenses pays off if you choose the more costly-but-more-durable option for certain areas in the home.
Examine Your Wiring and Plumbing
Buying an older fixer-upper or renovating an older home likely means taking a hard look at features like your plumbing, wiring, even your HVAC system. How much remaining life do these features have and should you invest more in these decidedly essential, but non-cosmetic upgrades?
It’s always smarter to upgrade if it means avoiding more costly repairs down the line. An old plumbing or wiring setup may work fine. Until it doesn’t. Anticipating the sudden death of a crucial part of the home can help you save money in the future.
Consider Your Current Design vs. a New One
What do we mean by this? Basically looking at the sections of your home that may be enhanced with a bit of expansion. Do you have limited closet space and find storage to be an issue? Your home renovations could include plans to expand your storage options whether that’s by adding or expanding closets or installing modular storage solutions to help.
------------------------------
RELATED VIDEOS:
Annual Income Requirements for FHA Loans
Good Credit History Helps Get FHA Loans
Stay Informed About Your Mortgage Closing Costs
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