Fixer Uppers: The 203k Mortgage

Purchasing a New Home? There is no need to be discouraged by Fixer Upper’s: The 203(k) Mortgage solution.

203(k) Kitchen before Renovation

So you have decided that your 2 bedroom, 1 bath cottage home isn’t going to cut it anymore. After all, its getting tight with you, your spouse, two kids, and Rufus your dog (or Crookshanks your cat). The stresses home searching can be daunting. Will you be able to find a home in a respectable area, with good schools, the space that you need, within the budget you have to stick to? These are just some of the thoughts that add to the stress of home buying.

Let’s say its a quite Sunday afternoon. While driving with your family to your favorite ice cream shop, a sign in a yard catches your eye. This home has everything. It’s in a great neighborhood for your kids. It’s only 10 minutes from the office. The yard needs some tender care, but definitely manageable. 5 bedrooms, 3 bathrooms, a garage, a family room – plenty of space for your growing family. Your realtor opens the front door. Disappointment is an understatement. There are water stains on the ceiling, and entire walls of sheetrock missing. There is an obvious leak under the kitchen faucet that has rotted out the cabinets, not to mention rotted window sills and brickmold. You think to yourself, “It could have been perfect.”

Here is the great news: IT STILL CAN BE!

203(k) Kitchen In-Progress

Enter the 203(k) solution-

There has been a mortgage program out for while, but has not been aptly utilized. This type of mortgage is called the 203k Mortgage. This type of mortgage allows you to not only purchase the home of your dreams, but also roll the remodeling, upgrades, or necessary repairs into your mortgage. There are two main types of 203(k)’s you should know about:

“Streamlined” 203(k)

I have found streamlined mean “less red tape.” It also limits the scope of your project to $35,000. We have found streamlined 203(k) loans used to make minor repairs and replace finishes, like flooring, scraping the popcorn texture off the ceilings, and adding cabinets to the kitchen.

203(k) Kitchen with Pendant Lights, Granite, and more

Regular 203(k)

If you are prepared to ‘HGTV’ your new home, the Regular 203(k) may be the solution for you. There are limits based on how much your home is worth after the remodeling and upgrades, but do not be discouraged: We have had clients that were eligible for $80,000 or more for their projects. Oh the possibilities…

203(k) Kitchen with new, custom built cabinets and flooring

The 203(k) mortgage is a great option to get your dream home, and your dream home configured the way that you want it. Ask your realtor or mortgage lender professional for more information about the 203(k) mortgage, then call Hazelwood Construction Company, Inc. to make your vision come into reality – We have experience you need to work with you, your realtor, and your mortgage lender professional to utilize the 203(k) to make your home dreams come true.

 

SAVE MONEY: Upgrade Your Insulation

SAVE MONEY! Upgrade your attic insulation and stop giving your hard earning money to the electric company today.

If you own an older home you know how frustrating it is to pay high energy bills during the hot summer and the cold winter. You know the problems of fluctuating temperatures during day, and those hot spots throughout your home.

During a recent remodeling project, our client mentioned that he was experiencing “hot spots” in his home, outrageous electric bills, and severe temperature fluctuations in his home – especially in the afternoon when the sun was beating down on his home. Mind you this is during the hot South Carolina summer. I asked to inspect the attic and sure enough I found very little insulation! R6 at best.

In Need of Insulation

Notice how you can see the ceiling joists. This attic is losing energy, and in need of attention.


Insulation 101 – the R-Value

The most basic knowledge you need in regards to insulation is the R-Value. Simply enough the “R” in R-Value stands for “Resistance”. Essentially, the R-Value is a measurement of the insulation’s ability to resist the flow of heat. In your attic, the insulation provides a thermal barrier between your ceiling and the heat that accumulates in the attic. In your attic, you want a minimum of R38, which equates to 16″ of loose fill insulation (shown in photo). Loose fill fiberglass insulation is the most common material used in attics. Other materials you may find in your older home include cellulose and rock wool insulation, however upgrading to fiberglass is both cost effective and energy efficient.

New Insulation

R38 Fiberglass Insulation Up Fit


How We Can Help:

For our client, we provided a turnkey insulation R38 up-fit for his attic. Because we are general contractors, we work with the vendor(s) to provide the utmost value and service to our clients. We deal with all the scheduling, invoicing, quality control, and any potential headaches that come with dealing with vendors.  Our client is now experiencing less expensive electric bills, and steady, cool temperatures throughout his home – at an excellent value. For our client, his investment will pay off in less than a year! He will be saving his money instead of sending it to his electric company. You can too!

If you are experiencing energy loss problems (therefore money loss problems!), please give us a call. We will be glad to provide a home inspection to determine whether your attic is up to the latest standards and codes, and rectify the problem quickly, and efficiently so that you can start saving money! For more information about the other valuable services we offer to our clients please check us out here.