FHA 203K Renovation Loan Offers it All
Two newly weds are purchase and renovate their first home in Grapevine, TX with the power of FHA 203K Renovation Loan. After two years of spending evenings in a one bedroom apartment searching for the right property and frequenting the Zillow Digs for a remodel visions, it was time to make the move, After the home inspection the realization that the property was in desperate need of foundation work was no surprise for a home this age in Texas. No problem for this rehab loan!
The FHA 203k renovation loan on this house allowed a total budget of about $65,00.00. After the foundation was leveled, the focus was all toward other needed repairs and remodel bringing the home a more modern updated feel.Turning the bonus room begin the garage in to a bed room was key for adding value, take a look at the project specs below,
FHA 203K Renovation Numbers Breakdown
Purchase Price
Base Bid
Contingency
Inspections
$131,500
$59,970
10%
4
After improved value of $119,000.00
Before we tell you the renovation specifics , we need to know the property specifics. This is a single family one story home built in 1953. It is currently a 2 bedroom, 1 bath home but is being converted into a 3 bedroom, 2 bath home built on a pier and beam foundation. The exterior is mostly brick veneer with some wood siding and it has a composition shingle roof.
The foundation needed 30 Concrete Pressed Piers that were Driven to Refusal. The Foundation is then Lifted and Stabilized. Some of this was normal shifting and some of it was correcting a poorly constructed addition by the previous owners. The foundation layout can be seen below and the 203K Standard Renovation Loan was just what this property needed for foundation.
The remodel now begins with a new top of the line 4 ton HVAC unit to completely turn around this homes energy efficiency and keep them cool in the scorching Texas summers. Electrical rewires throughout the home and plumbing for both bathrooms were project essentials. Being selective and creative with new hardwood flooring, tile, kitchen counters and refurbished cabinets allowed the personal touch needed for this new family. All drywall, new door entrances were also included for the bonus room to bedroom remodel. Another renovation in the books for the Leesa Sandoval Team. Cant wait to see the finished results!
Kitchen before remodel
Bonus room to be converted to master bedroom
Living room before new flooring
Bedroom
Did you know this about the FHA 203K Renovation Loans?
FHA 203K Renovation Loans have many of the same qualifying guidelines as a regular FHA loan. Down payment can be as low as 3.5% and credit scores can go as low as 580. Although any score below 620 can at times have additional overlays and stricter seasoning requirements for bankruptcy. If you are considering purchasing a home it is important to apply with a lender early to make sure you qualify or have time to make the adjustments needed before your search heats up.
Repairs don’t scare me and they shouldn’t scare you either. Call me today to discuss renovation loan options.