5 ways to make your renovation loan go further

Finding your dream home isn’t easy, especially if you are working with a tight budget or in a hot real estate market. One option that can help you find the right house is to buy a fixer-upper home and finance the needed remodel with a renovation loan. Our loan specialists can walk you through our different renovation loan options, including FHA 203(k) loans, and help you find the best financing for your needs.

For most renovation loan projects, you’ll need to submit your renovation plans for approval to a Department of Housing and Urban development consultant that you’ll have to hire. You’ll also be required to have the property inspected after each phase of work is completed to make sure you are meeting local property codes. So what projects do you focus on first? Here are the five priorities we encourage our clients to focus on.

1. Structural issues. Before you can safely move into your home, you need to make sure that everything is structurally sound to live in your home safely. From a renovation viewpoint, you need to tackle any structural problems like foundation issues or roofing problems first. These projects are typically expensive and can eat up a big chunk of your budget.
2. Plumbing issues: Water damage or plumbing issues are a huge hassle and can lead to further repair work down the line if they are not addressed quickly. Older homes often have low-quality plumbing that may be inefficient or unsafe. Replacing the plumbing in your home is a big job and may require a lot of demolition.
3. Electricity issues: Most older homes are not designed for our modern electrical needs. Upgrading the electrical work in your home isn’t cheap, but it can help prevent electrical fires and system overloads. Make sure to earmark significant funds to address outdated electrical work in your new home.
4. Layout problems: Changing the layout of your home to fit your needs is no easy task. If you’re considering taking down walls and rebuilding rooms in your home, do it first. It’s easier to tackle these large-scale projects when your home is unoccupied and already in demolition mode.
5. Upgrading the kitchen: Kitchen upgrades are typically one of the most expensive home renovation projects. It can be costly to save up for a kitchen remodel, so using a portion of your renovation loan to remodel your kitchen is a smart way to fund such a large project!

Buying a fixer-upper home is a lot of work and money. Our team will do our best to help you finance the purchase with the right renovation loan for your needs. But once your loan is approved, it’s up to you to decide how to best use your funds to remodel your home. Follow our tips, and you’ll be able to make your renovation financing go further than you thought!