First time homeowner transforms property bought with renovation loan
This first time homeowner located in Dallas, TX put dedication into searching for the right house and she was not afraid to encounter a home that needed some work to be done. Her priority was remodeling the kitchen, and through the help of the FHA 203k Standard Renovation Loan and a consultant to manage the drawings and inspections, her home remodel is underway.
The project was all about the kitchen! The budget was used to remove the wall between the kitchen and dining room, turning it into an open kitchen. After that, the kitchen received new cabinets and marble tile flooring. But, that was not enough to stop the changes...there was the addition of a nook, pantry, and a sun room! Some of the not so exciting but needed repairs also happened, including the update of electrical, plumbing, and insulation repairs.
Dining Room
Living Room
Sun Room
Through the 203K Standard Renovation Loan, she was able to receive a total budget of $60,000. With the remodeling of the kitchen, the house increased about 26% in its value. Take at the chart below to find out more details:
FHA 203K Renovation Numbers
Purchase Price
Base Bid
Contingency
After Improved Value
$235,000.00
$57,993.00
10%
$295,000.00
Excited to see how the house turned out? Stay tuned for some after pictures! Our team is thrilled to help one more person acquire their dream house and our client's testimonials are the best:
Professional, knowledgeable, and on top of things. Friendly, too and always available.
Guidelines for HomeBridge: (every lender can have specific overlays to protect themselves)
- Minimum cost of rehabilitation must be at least $5,000
- No maximum repair amount
- Consultant Required
- Work must start within 30 days of closing, cannot cease for more than 30 days.
- Work must be completed within 6 months of closing
- Contingency Reserve 10 to 20% (determined by the Consultant)
- Maximum of 5 draws permitted
- Can finance up to 6 months PITI if home deemed uninhabitable by the Consultant.
Did you know this about the 203k Standard?
There will be a 10 to 20% Contingency Reserve built in on top of the renovation bid for anything unforeseen that was to come up during construction...the little "uh oh fund" will already be in place. If the Contingency is not needed, the funds will be applied to the principle of the loan amount.