Remodeling your Charlottesville home may mean making a huge change, but it could also mean just updating your countertops, refreshing the cabinets from years of wear, or finally removing the old plastic shower stall in favor of a new tile shower and glass door. Whatever the extent of the project, you’ll need a source of funds to pay for it.
The first thing you will need to do is determine the scope of the project. Remodeling on any scale is going to disrupt your life, so being organized about it will make things a little easier for you. Consider your whole house and lot…
1. Buy a notebook that will be the house improvements notebook. These next steps are among the most important, so just grit your teeth and bear it.
2. Start at the street and walk in the front door, walk through the main level, then upstairs, and then into the basement, and into the garage, and then through the side door and into the back yard. Walk under the deck and then up onto the deck. Make notes along the way…. What improvements would you like made? Maybe the shrubbery needs to be removed and replaced and the walkway power washed. How’s the front door look, the porch? Painting, mold removal, sweeping, repair of pickets, nail pops? Maybe the carpet is worn and dated, the paint is worn, the countertops are dated, and the cabinets are dingy? Are things stuffed into closets and the pantry is overflowing. Are you comfortable in the house? Do you like where the pets are fed? How does the house “live” for you?
3. Now prioritize and determine which projects you or a family member will need to tackle. Then determine which projects will need to be handled by a professional, whether a contractor who will oversee the whole project, a plumbing contractor, tile contractor, countertop people, whatever. Talk to friends, call me, or however you are comfortable finding the right person for the job, find Charlottesville area professionals with which you are comfortable working.
4. Now you can begin to get pricing. Also, get a handle on timing… when can they begin and how long will the project take from start to finish.
5. Finally, it’s time to find the money to fund the project.
Finding money for home improvement projects used to be a breeze. You could call the bank, get an appraisal, and either get a Home Equity Loan or Home Equity Line of Credit, and take care of whatever needed taking care of. In the early days, we personally had a LOC and built a deck, finished a main level suite for aging parents, and put in our hardwood floors. Actually, for one of those I think we refinanced the house. Anyway, Home Equity Loans are out there, but they are not as easy to find or are not as attractive as they once were. I certainly would call your bank and discuss your options.
There are a couple of government backed mortgage loan programs that are attractive and made to order.
1 – FNMA Homestyle Renovation Loan – permits borrowers to include financing for home improvements in a purchase or refinance transaction of your existing home.
2 – FHA 203(k) Streamline Loan – A homebuyer may borrow up to $35,000 for rehabbing or repair projects, such as roofs, gutters, replacing or upgrading HVAC systems, replace flooring, replace or upgrade existing electrical or plumbing, non-structural remodeling, painting, etc.
3 – FHA 203(k) Renovation Loan – Probably the meatiest of the three, this loan provides up to 110% of the after improved value to correct such items as structural changes and additions, replacement of plumbing and electrical, changes for aesthetic appeal, remodeling kitchens and bathrooms, changing roofing, flooring, and this loan will even help with major landscape work and site improvement.
Locally, in the Charlottesville area, there is a cap of $417,000 for the loan amount.
I strongly advise contacting a mortgage broker and considering how these programs might help you get started; each of the following three brokers offers these programs which will help you determine the best avenue for paying for the remodeling of your Charlottesville home.
Patrick McKenzie, Mortgage Loan Originator
University of Virginia Credit Union
Please visit our other posts about remodeling:
If you are considering purchasing or selling a home in the Charlottesville area, rely on me to help you put the pieces together. Virginia Gardner, Roy Wheeler Realty Co., (434) 981-0871 – Email Virginia