5 Renovations to do with a 203k Loan

5 Renovations to do with a 203k Loan

New Roof

Did you discover in the inspection period that the roof needed to be replaced but the seller is adamant about not fixing it. Maybe they are willing to reduce the sales price to accommodate the repairs, but what good does that do for you if you dont have the cash for the repair? The FHA 203k loan is great for just this scenario.
Example: You have an agreed upon contract price of $210,000. The inspections reveal you need a new $10,000 roof but the seller can’t give you anymore closing costs but is willing to reduce the sales price to $200,000. The FHA 203k loan allows you to finance the difference and have an approved contractor replace the roof just after closing and before you move in.

New Floors

Do you love everything about the home you want to purchase, but the floors? Replacing floors throughout the home can be a costly job after paying for the materials and installation. Use a 203k loan to pay for and install your pretty new floors before you move in!

New Appliances/Update Kitchen

What if you were a little more ambitious and had some time before you had to move in and you could create your dream kitchen or just install new appliances? You can have fun designing your dream kitchen or just update those white appliances to stainless steel ones with a 203k loan.

Renovate a Bathroom

Maybe the home you are buying has been renovated but just the last lonely bathroom was untouched. The 203k loan can get the bathroom updated for you just after closing.

Landscaping

Sometimes outside just needs some sprucing up. You can use the 203k loan to spruce up the landscaping, or completely revamp the garden.

These examples are just the tip of the iceberg on what you can do with a FHA 203k loan. Some other things to keep in mind when considering the 203k loan:  Know what your loan budget is. If you are only approved for $200k, keep in mind your home contract price must be under that. The whole 203k loan would not be able to exceed your budget of $200k.

For more information on FHA 203k Loans – check out my blog post with more details.

Take a look at the list of approved contractors in the Greater New Orleans Area that have worked with FHA 203k loans before. Maybe meet with one or two first to get some quotes and ideas so you know what scope of work you are talking about.

Have any more questions, contact me and or Darla McNamara with America’s Mortgage Resource. She is a loan officer that works with the 203k loans.