Remodeling Projects: “Remodeling Magazine” Releases 2011-2012 National Averages For Home Remodeling Projects And Resulting “Resale Value”

8 08 2012

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Home Remodels Without Much Equity?: FHA 203K Renovation Financing Allows Homeowners To Finance Most Improvements Using Up To 110% Of The “As-Repaired” Appraised Value For The Maximum 96.5% LTV Loan Amount

25 03 2011

 

  • The Federal Housing Finance Agency (FHFA) reports that homeowners lost more than half their equity from 2006  to 2009
  • At that point the economic recession ended but home prices have continued to fall
  • Finding a lender to make a loan is difficult although not as hard as 12 months ago
  • Second mortgages all but extinct

THERE IS STILL ONE OPTION: The Federal Housing Administration FHA 203(k) Renovation Mortgage

  • The FHA 203k is not just for buyers who want to purchase distressed properties as it allows them to roll the price of the house and renovations into a single loan
  • Buyers of “non-distressed” homes can use the 203(k) if they want to do some work on their dream houses before moving in
  • Current homeowners can use it to refinance and roll the costs of their home improvements into a new first mortgage at today’s low rates
  • There is no limit on how much you can spend on your improvements as long as the total loan amount does not exceed the FHA maximum
  • FHA maximum loan amounts range from $271,050 to $729,750 in the country’s high-cost areas
  • The “as improved” appraised value of your property must be higher that the maximum loan amount
  • Almost ALL improvements are allowed except for luxury items
  • Cost must exceed $5,000 and the existing foundation must remain in place
  • The home can even be torn down!
  • Inspection fees, architectural fees, closing costs and permits can be included in the new loan amount
  • A $300,000 home can include a $100,000 remodel and the loan can be as high as $424,600
  • If the appraiser says your $100,000 project will add $125,000 in value, then  the loan amount can be $451,100
  • The maximum loan amount, subject county-specific maximum loan amounts,  is 96.5% of the improved value of the property
  • There is no requirement for the property to be “re-appraised” once the work is finished
  • The streamlined version of 203(k) is available for minor home improvements under $30,000




FundMyRemodel.com Major Repair Update: FHA 203k Renovation Loans Offer Homeowners A Way To Repair Foundation, Mold And Water Damage

17 09 2010

Foundation
If you have bowed basement walls, cracks in walls or floors or a tilting chimney, you may be aware that these are signs of a problem foundation. But many people don’t realize that difficulty opening and closing doors and windows can also be early signs that your home is shifting. And whether you have a new home or an old one, foundation problems often require major repairs — and a big cash outlay. According to the Concrete Network, a consumer website devoted to concrete services, foundation problems can be caused by the type of soil the house is built on, an improperly laid foundation or drainage problems. Whatever the cause, a bad foundation is bad news and, depending on the severity of the problem, can cost the homeowner well over $10,000.

How to prevent it: Assuming your home was properly built, the most you can do to prevent problems in your foundation is to ensure that your home has proper drainage. This means that gutters and eavestroughs should be kept clear and in good repair, and your yard should be properly graded to ensure that water runs away from your house.

Mold
Unlike major water damage, such as that caused by flooding, minor or hidden water damage in your home, perhaps from a defective water pipe, hot water heater or window seal, can cause just as much damage — and you may not notice it right away. Similarly, if your home suffered through a flood in the past and did not adequately dry out, mold can also thrive. (If you live in a flood-prone area, flood insurance is a must.)

A 2005 study by the National Resources Defense Council showed that New Orleans homes that had been flooded or were even near areas of flooding showed extremely high levels of mold spores that could pose health threats to residents, even in the homes that had been repaired and treated for mold. And the more humid the area in which you live, the harder it will be for you to get rid of mold and keep it from coming back. According to the Environmental Protection Agency, if the mold growth in your home is larger than 10 square feet or was caused by sewage or other contaminated water, it’s time to call in a professional. Although home insurance may cover some of the costs depending on your policy, the cost of mold remediation is about $3,000 per wall, according to Environmental Solutions Group, an environmental management company that inspects homes for mold — and that doesn’t include the cost of replacing any mold-infected materials such as drywall, carpet or ceiling tiles.

How to prevent it: Mold can’t grow without moisture, so it’s important that you check for and fix any leaks in your home immediately, use fans in kitchens and bathrooms to vent moisture outside and clean up any mold growth immediately to prevent it from spreading.

Water Damage
If your home isn’t water tight, this isn’t something you can ignore. Beyond the possibility of mold, long-term water damage can cause rot, which can lead to all kinds of expensive repairs to the structure of your home. It’s difficult to estimate the cost of this type of repair, but it can easily run into the thousands depending on how much wood needs to be replaced and how intrusive the repairs are.

How to prevent it: Be vigilant about water damage in your home; if you find leaks or areas that tend to be damp, have them repaired before long-term damage occurs. If you find rotten wood in your home, repair the problem before it gets out of hand.

For more:  http://finance.yahoo.com/family-home/article/110621/expensive-unexpected-things-happen-to-home





FundMyRemodel.com Room Additions: FHA 203k Renovation Loan Can Fund Demolition Of Sections Of Home To Make Room For Major Room Additions (Video)

17 09 2010

In this video, the back of a home is demolished to make room for a room and basement addition in a whole house remodel project.





Home Remodeling Profile: Indiana Contractor Renovates A 1,000 Square Foot Basement (Video)

28 07 2010

 This is a renovation job we are very pleased to unveil. We took an unfinished basement and turned it into a true masterpiece. This job is a great example of the superior craftsmanship and attention to detail of our company. All work was completed by Thomas J. Pearson, Builder & Designer. 317-861-9778