3 kitchen renovation ideas and how to fund them

The last few years have seen an enormous uptick in the number of homeowners who want to transform their homes from one they like to one they love. The kitchen is consistently the top priority in home renovation projects, to no one’s surprise. It’s easy to understand why, though it may be a little harder to get a grasp on which part of your kitchen to take on and how you’ll fund the upgrade.

The short answer is that an FHA 203(k) loan can fund almost any home improvement you have in mind. What improvements you choose can depend on your needs and budget. Three popular ideas include adding an island, remodeling your cabinets and upgrading your appliances.

Adding an island to your kitchen

Installing an island in your kitchen is a great way to create storage for the extra items that would fill up the standard cabinets. It can also function as a snack table or even a place for family lunches. In some situations, you may find that it’s a great place to set up your laptop and get to work.

Beyond the practical, however, an island brings style to a kitchen and might otherwise feel empty or drab. That’s why its important to know what kind of island you want to install. It could be a relatively simple project involving the installation of cabinets and adding a butcher block on top, or it can become more expensive.

Though the idea is the same, you’ll want to keep an eye on these factors to determine how complex you want your island to be.

Size: For foot traffic, leave about 36 to 48 inches of space on all sides. However, these numbers can change depending on the planned use of it.

Materials: Stone countertops made from granite or marble are extremely popular. You can also include engineered Quartz in that list of top materials.

Features: Will you want to run electrical wiring through the island or plumbing for a sink? If so, make sure you budget for these additions.

Replacing your old kitchen cabinets

Here are a few signs to let you know that your kitchen cabinets need a makeover:

• Water damage seen in warped wood, mold or “bubbling” on the surface.
• Doors that don’t close or are hard to close.
• They look like they were designed last century, not in a beautiful, antique way.

You don’t want to take any half measures on kitchen cabinetry. A quality setup can provide you with decades of use and enjoyment. If you see any of the signs above in your kitchen, you’ll want to start planning your renovations soon.

Replacing your kitchen appliances 

There are two approaches you can take to your kitchen appliances. One is, “What stove? That’s what Uber Eats is for.” The other approach is to view them as essential items in your home that enhance the look of your home the quality of life in it.

When guests are over, you want appliances that work. When cooking, you want appliances that aren’t an eyesore. A kitchen renovation can cover both by replacing them with new models that fit both functional and aesthetic needs.

Renovation lending for a new kitchen

Funding your kitchen renovation is easy with an FHA 203(k) loan. Part of the larger Federal Housing Administration (FHA) mortgage program, an FHA 203(k) loan is designed to offer mortgage funding to borrowers who would benefit from flexible credit and debt-to-income ratio requirements.

An FHA 203(k) loan offers competitive rates and is specifically meant to pay for major or minor home repairs. When considering this loan solution keep in mind that it:

• Is only applicable to primary residences
• Focuses on repairs and fixes as opposed to “luxury” improvements
• Establishes an escrow account which holds the money for your contractor

There are two types of FHA 203(k) loans. The limited (formerly known as the streamline 203(k)) and the standard.

As the name suggests, the FHA 203(k) limited caps its funding at $35,000 and will help fund cosmetic changes. This can mean, for example, new carpeting, a fresh coat of paint or the purchase and installation of appliances. Think of these as repairs that you can do while living in the house.

While the FHA 203(k) standard loan funds major renovations or structural changes that cost at least $5,000. The cap varies depending on the community. With this loan option, you can replace, construct or demolish different parts of your home.

Choose the right renovation loan

The two FHA 203(k) programs are incredibly versatile and allow you to take your kitchen upgrade to the next level.

As a homeowner, you are in the driver’s seat when choosing how to fund home improvement projects. Once you’ve decided you’re ready to move forward, reach out to me.

As a Mortgage Loan Originator in one of the nation’s top renovation lenders — Homebridge has been named a top FHA 203(k) lender by HUD for the last four years — I understand how to deliver service that provides the personal touch your goals require.

Contact me today to get your kitchen renovation started!