The FHA 203k can help finance required repairs as well as desired improvements whether you’re buying a house or you’re willing to refinance to pay for the work you want done. This home improvement loan option is great for first time home buyers, step-up buyers, refinancing homeowners and almost any other real estate category.
For about $6 a month added to the mortgage payment, you can add $1,000 in home improvements. So a $20,000 remodeling project would add about $120 to your monthly mortgage payment. The nice thing is that the interest paid is part of your mortgage – tax break!
So what kind of work can you finance using the FHA 203k? The list is long. It’s almost easier to ask what you can NOT finance. That’s basically luxury items like a spa or tennis courts, or items that wouldn’t add value to the home like and LED HDTV. With that in mind, here’s a look at 10 ideas for home improvement projects you could finance with the FHA 203k mortgage option.
- Energy efficient windows. Not only would they look nicer than the old rotting wood ones there now, but it will save on your heating and cooling bills!
- Exterior paint. Cracked, faded or just plain ugly – it’s time to repaint the house. Paying for a professional job beats hiring the neighbor kids who will probably make a huge mess anyway (I can say that – I’ve been one of those neighbor kids!).
- Roof repair or replacement. You don’t really want to climb up there and do it yourself. But if the house needs a new roof (or repairs), then it’s a must-have. You don’t want an inadvertent sunroof in your home, do you?
- Flooring replacement or upgrades. FHA requires flooring in a home. You probably require that, too. All new carpet, laminate or tile – your choice.
- Kitchen remodeling project. Everything but the kitchen sink…well that’s not exactly true. You can get a new sink, too. Plus appliances. A new kitchen? That makes everyone happy.
- Convert/add a bathroom. Who couldn’t use another bathroom? I live with 2 daughters and a wife. I could use a few extra bathrooms.
- Build a deck. What better place to spend the summer and fall than on the deck in the evening? Build or repair a deck with the FHA 203k.
- Add a porch. If the mosquitoes could carry you off your deck, maybe a nice porch is just the ticket. Heavy duty screens could make the difference between looking at a nice deck outside from the comfort of your kitchen…and experiencing the nice outdoors.
- Lead-based paint abatement. Get rid of lead-based paint and have new, safer paint in its place.
- Mold issues/damp basement. Who wants to live in a moldy home? Finance the mold removal and basement water-proofing with an FHA 203k.
While one or two of these projects may not warrant an FHA 203k, add up a few of them and you have yourself a pretty pricey list of work. The 203k requires a licensed contractor perform the improvements, so you’d have the benefit of a professional doing all the work.
Learn more about this option with “The FHA 203k Survival Guide“. The guide walks you through the process and explains industry jargon in terms we can all understand.
Get your free copy today!