Have you lived in your home for so long, that it starts to seem a bit small to you?
The most common reason people sell their homes and look for a new one to live in it's because they want a more extensive area for their family.
This was the case for one of our latest projects in Monahans, Texas. The family has decided to sell their old house and look for a property where it could comfortably accommodate them.
The house they found was built in 1970's and has been recently been sitting vacant.
Front of property in Monahans, Texas
After acquiring an FHA 203k Streamline renovation loan, they were able to repair the property to living standards and add their own touch to it!
Living Room flooring
The project itself took the purpose of remaking the whole flooring installation, by adding new carpet to the bedrooms and laminating the floor in the other rooms.
Sheetrock repairs
Bedroom before repairs
Other than the major floor change, we have added: new baseboards, sheet rock repairs, treatment of termite damage, replacement of damaged exterior siding, replacement of front and back overhand, lead abatement, and complete replacement of the roof.
The 203k Streamline loan increased the property's initial value by +137%. The plans for this project will drastically transform this home into an elegant living place for this family.
Here are more details on the project's numbers:
203k Streamline Loan
Purchase Price
$80,300
Bid Amount
$25,000
Contingency
10%
After Improved Value
$190,000
Guidelines:
- A contingency reserve is help from the loan proceeds to cover health and safety costs that arise during construction (i.e. mold/termite)
- Deposited into an interest bearing escrow account.
- Financed - any funds remaining at the end of the renovation process must be applied as a principal reduction. - Financed unused contingency reserve may be used for correction/completion of a fire, health and safety issues, as well as completion of work that was part of the original work-write up (bid).
- Property must meet HUD Minimum Property Standards - Financed unused contingency reserve may never be used to purchase appliances or complete additional work that was not part of the original work-write up (bid).
Did you know this about Renovation Loans?
Did you know that all renovation programs require a contingency reserve typically anywhere from 10 to 20% of the original bid amount? These funds are for instances where there is unforeseen work that needs to addressed during the renovation time.