Smartest Uses of a Home Improvement Loan in 2014

1,375 views

Published on

Thinking of doing some home renovation in 2014? Well, you don't have to do it all on your own. Many mortgage lenders, like New American Funding, offer home improvement loans that can cover the cost of your remodeling, home addition and more. But, not all renovations are created equal. Learn which renovations will give you the most bang for your buck!

Published in: Economy & Finance
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,375
On SlideShare
0
From Embeds
0
Number of Embeds
677
Actions
Shares
0
Downloads
2
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Smartest Uses of a Home Improvement Loan in 2014

  1. 1. The Smartest Uses of a Home Improvement Loan in 2014
  2. 2. Home Improvements Making improvements to your home can not only improve its livability, but can also add beautiful touches to your house. Choosing the right areas to upgrade can also attract the eyes of buyers and increase your home’s overall value when it becomes the right time for you to sell.
  3. 3. Cost vs. Value Historically, popular renovations take place in some of the most used rooms of the house: Kitchens Bathrooms Master Bedrooms While among the most expensive renovations, improvements to these rooms also tend to have the best return on investment. You can see more about the most valuable improvements in our presentation Cost-Effective Home Improvements.
  4. 4. The Front Door: A Place To Start Sometimes the smallest change can have the biggest impact. On the National Association of Realtors’ annual survey of its members on the best “bang for the buck” home improvements, the simple act of improving the front door to the home is expected to be 2014’s best investment for home owners. In addition to bumping the curb appeal of a home, a steel door is an improvement in security and energy efficiency over a wood door. Plus, it requires less maintenance and won’t warp in the elements. http://www.realtor.org
  5. 5. http://www.realtor.org Popular Projects - 2014 National Averages Midrange Project Job Cost Resale Value Cost Recouped Attic Bedroom $49,438 $41,656 84.3% Backup Power Generator $11,742 $7,922 67.5% Basement Remodel $62,834 $48,777 77.6% Bathroom Remodel $16,128 $11,688 72.5% Deck Addition (composite) $15,437 $11,476 74.3% Deck Addition (wood) $9,539 $8,334 87.4% Entry Door (fiberglass) $2,822 $1,997 70.8% Entry Door (steel) $1,162 $1,122 96.6% Home Office Remodel $28,000 $13,697 48.9% Major Kitchen Remodel $54,909 $40,732 74.2% Master Suite Addition $103,844 $70,121 67.5% Minor Kitchen Remodel $18,856 $15,585 82.7% Siding (vinyl) $11,475 $8,975 78.2% Sunroom Addition $73,546 $38,011 51.7% Window (vinyl) $9,978 $7,857 78.7% Window (wood) $10,926 $8,662 79.3%
  6. 6. To expand homeownership opportunities and encourage community and neighborhood revitalization, the Federal Housing Authority (FHA) offers the Section 203(k) program, its primary program for the rehabilitation and repair of single family properties. If you need to refinance your home mortgage, the FHA 203(k) Refinance Loan allows current homeowners the opportunity to rehabilitate and improve their home. Whether it be making a home handicapped-accessible, replacing your roof or upgrading your kitchen, home improvement projects can raise the value of the property and allow you to customize as your needs change. The FHA 203(k) Refinance Loan allows you to cash out up to $35,000 for your home improvement project, and the mortgage balance can exceed the current appraised value of the home. You do not have to have an FHA home loan to qualify for the FHA 203(k) refinance loan. Rehab A Home = FHA 203(k) http://www.newamericanfunding.com/home-improvement-loans.aspx
  7. 7. FHA 203(k) - Projects Removal of lead-based paint Decks, patios, porches HVAC systems (Heating and air conditioning) Landscape improvements Basement completion Basement waterproofing Septic or well systems New kitchen appliances Washer/Dryer upgrades Roofs, gutters and downspouts Plumbing and electrical upgrades Minor kitchen or bathroom remodel Add carpet, tile or wood flooring Install new windows or doors Weather stripping and insulation upgrades Disability improvement Energy efficient upgrades http://www.newamericanfunding.com/home-improvement-loans.aspx The following list provides examples of projects that can be financed through an FHA 203(k) Home Improvement Loan:
  8. 8. For an FHA 203(k), homeowners must plan to live in the home they are repairing. All of the following types of types of residences qualify: Existing construction that is at least a year old. Single-family, two-family, three-family or four-family dwellings. Condos: if they have been approved for FHA loans. Mixed-use properties: If you are repairing only the home portion, a mixed residential/commercial property can qualify. Homes needing to be moved to rest on a new foundation. Tear-downs: As long as part of the foundation will remain, houses that need to be destroyed and rebuilt are eligible. http://hud.gov/ FHA 203(k) Eligibility
  9. 9. Smartest Uses of a Home Improvement Loan See What’s Within Reach With A Refinance Calculator http://www.newamericanfunding.com/mortgage-calculators.aspx

×