Tuesday, April 1, 2014

Tour Tuesday - Remodel with a 203K Loan

My cute clients moved home to Utah after living in China with their four kids for 3 years. They are handy and were hoping to gain some instant equity by buying a fixer upper and doing the work themselves. We found this darling home in Midway, where their kids would have lots of room to roam. It looks so cute it is hard to believe it needed any fixing up, but once you opened the front door you could see this house had done some hard living.

This is the living room before. The previous owners had started priming the walls but it looks like they went out for Tarahumara (best Mexican food in Utah) part way through and never came back.

The kitchen before. The kitchen wasn't in horrible shape but the solid surface countertops were cracked and lifted by the oven and the paint color was not helping the cabinets.

There were A LOT of these metal shelves around the house. Not bad in a closet but not the best look in the master bedroom and every other room in the house.

The bedrooms before.  This house has a GREAT floor plan. Master on the main and four bedrooms upstairs, but again, it looked like someone had started a painting project and left halfway through, never to return. The flooring upstairs was all Pergo, and it was badly damaged.

Bathrooms before. All the bathrooms had missing cabinet doors, broken tile or some other big problem.

So we found this cute house that needed a lot of work, which my clients were totally willing to do. The only problem was these repairs were so extensive the house would not qualify for a traditional FHA loan. The entire house needed to be carpeted, bathrooms needed to be tiled, the kitchen counters needed to be replaced and the whole house needed to be painted. In stepped one of my preferred lenders, Dave Osofsky with a great loan product, an FHA 203K loan.

An FHA 203K loan not only covers the cost of the property, it also covers the cost of the repairs to the home. So you can roll the cost of your renovations into your loan. These loans are a great option for buyers who don't have the money on top of their downpayment to complete repairs on a home. You can read more about FHA 203K loans here. Not many lenders offer this product, but Dave not only offered the product, he got the loan done in record time.

After finding the perfect loan product we were able to close on the house. My clients used the 203K money to pay a contractor (the 203K pays out for the repairs directly to an approved contractor) to have the countertops replaced, having the carpeting installed, buy new appliances, and have the bathrooms repaired. Then they put on their tool belts and went to work.

The house is still a work in progress but the changes so far are amazing:

They painted all the wood trim and doors white. When I heard they were doing this I was unsure - I thought the wood trim looked cute in this mountain setting but I absolutely LOVE it white. It looks very fresh and modern.

The next project in the living room is the fireplace - I can't wait to see what they do with it!

New granite countertops, appliances and a shiny backsplash in the kitchen:

They took down the horrible metal shelving in the master bedrooms and other rooms and put in new carpet:

Those crazy four bedrooms upstairs got a paint job and new flooring and it is darling up there now. Two of the four kids share the largest room (which is HUGE) which leaves the fourth bedroom for a playroom/lounge area.

If you have questions about a 203K loan (it is only available on a home purchase, not a refinance . . .) give me a call! And I promise to post photos of that fireplace when it is redone!


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  3. Wow, that’s a lovely home for a renovation project and you’ve done it really well. I usually end up with small homes and apartments to renovate but when such potlucks come about, I look forward to waking up every day . My policy is to have professional electricians and plumbers to always oversee my projects because I don’t want anything going wrong in those areas. Specially for a huge house like this, mistakes can be very expensive.

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