Have you ever found a home you loved the layout of but that had many things you would like to change? Or maybe you own your house but have a bunch of changes you would love to make but cannot afford it. The FHA 203K streamline loan makes it possible to make changes up to $35,000 that are non-structural while giving you the money to purchase or refinance your home. So how do you decide which repairs are the right repairs when you have a budget of $35,000? Here are a few tips.
The first thing you should do is consider which repairs NEED to be done. If there are issues with the roof, flooring, or windows, chances are they are not going to pass an FHA appraisal, which means you have no choice but to make those a part of your changes if you want to get the FHA 203K Streamline loan. A few examples of these repairs include:
- New or repaired roofing
- New windows to replace leaky windows
- Mold removal and repair
- Removing and repairing termite damage
These repairs should be first on your list simply because you need them done in order for the financing to go through. As an added benefit, a new roof and/or new windows helps many other areas of your home including the value and curb appeal, which makes it a win-win situation for you.
Consider the Interior
Once you have the logical repairs completed, you can think of things that you do not like inside the home that you would prefer to change. These changes could be cosmetic or non-cosmetic. A favorite of many homeowners is to change the flooring in the home. You may want to do this because the existing flooring is cracked or defected, but you may want to do it simply for cosmetic reasons. Swapping out carpeting for hardwood or linoleum for ceramic are just a few of the common changes homeowners make with the FHA 203K Streamline loan. These changes can completely change the look of the interior.
Another common change that can really change the appearance of the interior of the home is changing the paint color. This might not seem like a major change, but when you have the entire home painted, it can get quite costly. Including this change in your 203K loan can help you give the inside of the home a completely different look. Whether you want to simply swap paint colors or remove old wallpaper and replace it with paint, the job is a heavy duty one that can be handled by contractors and paid for with your 203K loan.
Upgrade your Appliances
If you have money left after you made the necessary and even cosmetic changes, some people make miscellaneous changes that include things like:
- Upgrade the appliances – Dishwashers, refrigerators, stoves, and ovens are all costly changes that can be included in your FHA 203K Streamline loan
- Add a deck or patio – If the exterior of your home is not complete enough for you, include the costs of a deck or patio in your loan to transform your yard with these changes
- Make energy efficient changes – You can also include changes such as the installation of solar panels in this loan as it helps you to save money every month and decreases the wear and tear on your utilities
The FHA 203K Streamline loan is a very versatile loan. Once you have the changes made that ensure that the home can pass an appraisal and inspection, the choice is yours. As long as the changes are not structural, you can change a variety of things about your home. Consider the above order to determine the changes you want to make to your new or existing home.