If you’ve ever tuned into the HGTV show Property Brothers featuring twins Jonathan and Drew Scott, you will have seen some amazing transformations take place. Jonathon and Drew help people to locate, buy and transform dilapidated properties or extreme ‘fixer-uppers’ into their dream homes.
There will always be a certain percentage of people who want their homes to be ideal when they move into them, but this isn’t always possible because a home which is already perfect tends to be expensive. Properties which need lots of attention tend to be far more affordable and always have potential for a profit when sold in the future. The key is to keep an open mind and not be daunted by the prospect of major upheaval and potential hard work.
‘Property Brother’s’ uses cutting edge computer generated ‘CGI’ technical effects to show buyers exactly how their home could look once all the necessary work has been carried out. Unfortunately, we can’t all create a CGI image but we all have an imagination which we could use in helping us decide whether a fixer-upper is a good investment.
Financing a Renovation
In order to take on an ambitious project like a major renovation you need to sit down and work out exactly how much the work is going to cost. Make sure that you obtain as many quotes as possible for the whole project or for each separate job so that you can budget more accurately. Many U.S homeowners end up spending more on a renovation than they had originally calculated, so it may be prudent to borrow a little more money as a back up plan if possible.
Loans from banks and other financial organizations can be difficult to get. Especially separate funds for remodeling or construction such as a second mortgage or Home Equity Line of Credit.
On mortgages that will be in first position lenders can require a large down payment and so this may leave you short of cash to carry out the work that needs doing.
Fixing up a House with an FHA 203K loan
On the other hand an FHA 203K loan, for example, is an extremely easy and affordable way to finance the renovation of your home. The down payment is a low 3.5%. And, for current homeowners very little equity is needed. Rather than borrowing various amounts from different lenders or using up all of your own funds the 203k loan will cover everything in one go. If the home that you are fixing up needs costly work done, then the 203K loan will fit the bill. Work such as remodeling a kitchen, bathroom, new heating, electrical, plumbing or windows to name a few, it’s all possible with one of these uncomplicated loans.
Property Dreams into Reality
If watching ‘Property Brothers’ has given you itchy feet to buy a property which needs urgent attention, then good. Because the show does demonstrate to viewers how much value you can add to a property by renovating it to a high standard. And, now that you know you have a financing option there is nothing stopping you from fulfilling your property dreams.