The 203K loan offers homebuyers a great chance to not only purchase a home but to fix it up as well. This means you can purchase a home that needs major renovations or repairs to bring it up to code and still be able to close on the loan. Major repairs and renovations are not the only things that the 203K is good for, however. There are many other ways that you can make improvements on your home with this loan which is easy to qualify for and has flexible guidelines.
Appliances are something that should last for up to 10 years sometimes and then need to be replaced. Sometimes you want to replace them before they stop working just because of the new technology and/or appearance that is available in today’s market. The 203K loan enables you to purchase new appliances for your home and include it in the loan. Appliances could be anything from a new refrigerator to a new washer and dryer. Maybe you have a top loading washer and you have always desired to have a front-loading machine or maybe your refrigerator no longer matches the décor in your kitchen – upgrading and/or changing appliances is a plausible use for this type of financing.
Flooring has a great impact on the value and look of your home. Just this one change can alter the entire appearance of the interior of your home. If you want to replace the carpeting or even change the entire first floor of your home from ceramic to hardwood flooring, for example, you can do so with this program. There is no requirement that the flooring you currently have must be in poor shape or any other odd requirements such as that – if you want to change the flooring and there is room in the loan, you can include it!
Paint the Interior or Exterior
Paint is another great way to change the entire appearance of a home, whether inside or out. Whether you want to change the outside color to one that resonates with your personality or stands out better from the neighbors’ homes or you want to completely change the interior color of your home, you can include the costs to paint in the 203K loan. The difference with including painting in the loan, however, is that you must hire someone to do the painting for you, even if you usually do the painting inside, most lenders will require a contractor to do the work just so it is done in a timely manner rather than when you have a free moment or two.
If your home is not weatherized, it can cost you a lot of money in utility bills. The good news is that you can include weatherization into your 203K loan. This could mean changing things like your storm windows, front and back doors, and even adding insulation or weather stripping to help keep the heat in your home in the winter and out of your home in the summer. The benefit of including weatherization charges into your 203K loan is that you are able to decrease your utility bills and save the wear and tear on your furnace and air conditioner unit.
Add Porch or Patio
If your home does not have a porch or patio, you can add one on with the 203K loan. This can help the curb appeal, value, and use of your home. A porch or patio can completely transform how you use the exterior of your home and since it can be a rather costly addition, it is a great thing to add into your renovation loan as long as you have the funds available.
Finish the Basement
Have you been longing to finish your basement without any luck in saving enough money? It can be a rather expensive change to your home and since it is below living level, it often takes a backseat to the budgets that homeowners have to set. If you are refinancing your home or even purchasing a home with the 203K loan, you can include the costs to finish the basement in the loan, giving you the ability to accomplish your goals without breaking the bank. Whether you want to make it a movie room, another bedroom, or just a living area, this loan can help you get the funds you need to get it done.
The 203K loan has many benefits to offer, even if you are not purchasing a home that needs extensive renovations. Some people use the loan to completely transform a perfectly acceptable home just because its décor or layout does not meet to their liking, while others use it to upgrade things like the appliances or flooring. The options are endless when you use the full 203K loan as you are not restricted to a specific dollar amount in renovation costs. As long as the value of the home will increase as a result of the changes and you do not go over 110% of the predicted value for the loan, you are able to use this loan for financing your project.