Creating a property-specific home renovation plan

Once you’ve found the perfect old house to invest in, you’ll need to create a property-specific renovation plan. This is where a good real estate agent can use their experience as a real estate agent and community connector. He will be by your side every step of the way during your home renovation personally interviewing contractors while providing you with his people and long standing references.

He’ll help you find the right contractors who have a lot of experience remodeling older homes, and if you don’t have a big budget, he’ll find you a contractor who has resources and has handled similar projects. A great contractor is someone who nurtures relationships, considers clients’ needs, keeps them informed throughout the project, and sticks to their budget. And when the contractor is strong, the contractor’s subcontractors are too. If something goes wrong, it gets fixed, and oftentimes, an experienced contractor knows how to prevent problems before they happen.

If you have a Streamline FHA 203K loan, you will not need a HUD consultant and you can have up to three contractors.

You are eligible for repair/replacement of:

• gutters/drain pipes
• decks/patios/porches
• window and door replacements and exterior wall cladding
• septic and/or well
• appliances including freestanding ranges, refrigerators, washer/dryers, dishwashers, and microwaves
• existing HVAC system
• existing floors
• remodeling for people with disabilities
• base refinish/remodel
• minor remodeling, such as in the kitchen that does not include major repairs
• exterior/interior painting, including lead-based paint stabilization
• Air conditioning, including shutters and doors.

For an FHA 203K consultant loan, you’ll need a HUD consultant to oversee the renovation project from start to finish. It is your borrower’s responsibility to choose the consultant. During the inspection, the consultant determines what repairs are needed, and then the borrower and consultant discuss how much money to get from the contractors based on the amount of work completed. This loan is typically used for homes with repairs over $35,000 or that require structural repairs to the foundation, well, or pool. There should only be one general contractor (GC), but there can be up to three contractors. Contractors do not receive any money up front and their fee is based on work completed.

With a Consultant FHA 203K loan you are eligible for:

• structural alterations/additions
• a new attached/detached garage
• a kitchen/bathroom remodel
• appliance installation
• pool repair
• plumbing/electrical retrofit
• install or repair wells/septic systems
• install flooring/tile/carpet
• Primary Landscaping/Decks/Fences
• disabled accessibility
• interior/exterior painting
• any improvements that are a permanent part of the property

There is a whole world of opportunity with home renovation loans. With a little research and education, your renovation can be easy and rewarding.