Home Remodels Without Much Equity?: FHA 203K Renovation Financing Allows Homeowners To Finance Most Improvements Using Up To 110% Of The “As-Repaired” Appraised Value For The Maximum 96.5% LTV Loan Amount

25 03 2011

 

  • The Federal Housing Finance Agency (FHFA) reports that homeowners lost more than half their equity from 2006  to 2009
  • At that point the economic recession ended but home prices have continued to fall
  • Finding a lender to make a loan is difficult although not as hard as 12 months ago
  • Second mortgages all but extinct

THERE IS STILL ONE OPTION: The Federal Housing Administration FHA 203(k) Renovation Mortgage

  • The FHA 203k is not just for buyers who want to purchase distressed properties as it allows them to roll the price of the house and renovations into a single loan
  • Buyers of “non-distressed” homes can use the 203(k) if they want to do some work on their dream houses before moving in
  • Current homeowners can use it to refinance and roll the costs of their home improvements into a new first mortgage at today’s low rates
  • There is no limit on how much you can spend on your improvements as long as the total loan amount does not exceed the FHA maximum
  • FHA maximum loan amounts range from $271,050 to $729,750 in the country’s high-cost areas
  • The “as improved” appraised value of your property must be higher that the maximum loan amount
  • Almost ALL improvements are allowed except for luxury items
  • Cost must exceed $5,000 and the existing foundation must remain in place
  • The home can even be torn down!
  • Inspection fees, architectural fees, closing costs and permits can be included in the new loan amount
  • A $300,000 home can include a $100,000 remodel and the loan can be as high as $424,600
  • If the appraiser says your $100,000 project will add $125,000 in value, then  the loan amount can be $451,100
  • The maximum loan amount, subject county-specific maximum loan amounts,  is 96.5% of the improved value of the property
  • There is no requirement for the property to be “re-appraised” once the work is finished
  • The streamlined version of 203(k) is available for minor home improvements under $30,000




FHA 203k Remodels: Homeowners Are Completing “Recession Remodels” To Stay In Homes Longer Or Improving Home For Elderly Parents To Move Into

2 01 2011

  • Eighty percent of those 65 and older responding to a recent telephone poll of 1,616 adults ages 45 and up conducted for AARP said they wanted to stay in their houses as long as possible.
  • Eighty-two percent said they had a full bath on the main level of their homes, and 81 percent had first-floor spaces that could become bedrooms if the need arose.
  • This generation is making small and not-so-expensive changes to their houses to accommodate health or other life-changing issues.
  • Kitchen renovation can accomodate a move into the home by and elderly parent after the death of the spouse
  • A renovation can expand and upgrade rooms into an open floor plan, with cabinet and counter space, multilevel work and eating space, and easy-to-reach appliances.




FundMyRemodel.com: Bathroom Remodels Can Return 70% On Investment And Should Be Completed By A Professional Contractor

19 09 2010

According to the National Association of Realtors, remodeling a bathroom will give you a 71 percent return on investment, based on 2009 statistics.

“Bathrooms are not really do-it-yourself projects. They are very labor intensive. I think in the long run you’ll be frustrated and you’ll have to bring someone in anyway,”

“It’s money well spent,” said Cambridge interior designer Mary Johnston, who remodeled the bathroom in her 1897 Queen Anne Victorian.

Johnston and her husband spent about $15,000 to upgrade their bathroom three years ago, a cost considered to be mid-range.

She planned the room to reflect a century-old period but made sure that the master bath functioned as a modern space for her and her husband.

Previous owners had moved walls to the original bedroom and created a huge space that dwarfed a pedestal sink, toilet and claw foot tub, so Johnston scaled down the 172-square-foot space by almost half and built a walk-in closet on the other side.

For more:  http://poststar.com/lifestyles/article_69c30174-c2d7-11df-a2b0-001cc4c002e0.html





Green Homes: High Energy Star Ratings On Home Appliances Can Reduce “Home Energy Consumption By 10-50%”

24 08 2010

 It’s time for you to replace your old appliances with energy-efficient ones, especially those with an Energy Star certification. By doing so, you are able to do three things: save more, reduce home energy consumption by 10-50%.

From energystar.gov, “Energy Star is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy helping us all save money and protect the environment through energy efficient products and practices.  According to Energy Star, Americans saved enough energy in 2009 alone to avoid greenhouse gas emissions equivalent to those from 30 million cars — all while saving nearly $17 billion on their utility bills. To ensure that all products are energy-efficient, Energy Star sets forth energy-efficient requirements which are based on the following set of key guiding principles (from energystar.gov):

  • Qualified products must deliver the features and performance demanded by consumers, in addition to increased energy efficiency.
  • If the qualified product costs more than a conventional, less-efficient counterpart, purchasers will recover their investment in increased energy efficiency through lowering utility bills within a reasonable period of time.
  • Energy efficiency can be achieved through broadly available, non-proprietary technologies offered by more than one manufacturer.
  • Product energy consumption and performance can be measured and verified with testing.
  • Labeling would effectively differentiate products and be visible for purchasers.

You may have a high-end model refrigerator that’s been with your for ten years or may be even more, but it’s been eating your budget ever since. Newer models of appliances are built with energy-saving features that allow you to save from $100-200 of energy costs annually. Energy-saving appliances can be expensive but you can save more on your electric bills in four years or so which substantiates for those extra costs.

If you replace your older model with an Energy Star high-efficiency dishwasher, you can definitely save money on your electric bill since you’ll be using 25% less energy than an older model. Other than that, you’ll also be saving 5,000 gallons of water annually. Thus, you can save money, energy and water all at the same time with an Energy Star high-efficiency dishwasher.

When you’re going “greener”, saving water is your greatest contribution to mankind and to planet Earth. Experts have forecasted that fresh water may become planet Earth’s most valuable resource. Saving up water today will give everyone enough water in the near future.

Almost all American homes are equipped with a washer and dryer. However, utilizing a 10-15 year old washer or dryer, will only make electric bills higher than what you can afford to pay. Purchasing green appliances, such as green washers and dryers can be costly but in the long run, you get to save a lot.

So, getting your old washer out of your home and swapping it with a horizontal axis washing machine, is your smartest and the most economical choices you’ll ever take for a longer term. The replacement is a sure opportunity for you to save up $120 a year or even more on your electric bills, which can still compensate for the price of your newly bought horizontal axis washing machine. Aside from saving up energy and money, these machines have other advantages as well.

Horizontal axis machines can fit into smaller spaces. Other than this, they’re quieter and allow you to wash large loads of laundry while using lesser amount of detergent. That way, you’re only putting fewer chemicals into your home’s waste water stream.

On the other hand, getting a dryer that’s equipped with moisture and temperature sensors is also one of the best green choices you’ll be making. Unlike other dryers that run for a set time, a moisture-temperature-sensor-equipped dryer will shut off earlier if the clothes inside it are already dry enough. Other than your energy savings, you can even save your clothes from possible wear and tear and you don’t have to keep on replacing them as well.

Compared to conventional models of dryers, sealed combustion gas clothes dyers use up lesser energy. It’s also beneficial for your health since they expel only a few gases that get into your home. But among all the dyers mentioned, nothing could ever beat the greenest and the most traditional way of drying your clothes.

For more:  http://www.ecoinstitution.com/green-news/energy-efficient-appliances-should-be-main-green-consideration/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+GreenNewsAndEcologicalAwareness+%28Green+News+and+Ecological+Awareness%29&utm_content=Yahoo%21+Mail





Skip Schenker’s “Fund My Remodel” Bathroom Contractor Profile: Phelan Construction (PA) Delivers High Quality Remodels In Eastern U.S. (Video)

7 08 2010

Phelan Construction, LLC is a residential remodeling company that understands the importance of process as well as product in delivering high quality projects. Through clear and thoughtful communication, we strive to exceed our clients’ expectations in every stage of the remodeling project, whether it be a kitchen, bathroom, deck, addition or whole house renovation.

Serving Pennsylvania, New Jersey and Massachusetts. Residential Remodeling in the Delaware Valley.

www.phelan-construction.com
1-(877)-6-PHELAN





Home Remodeling Costs Vs. Resale Value In Western U.S.: What Home Improvements Make The Most Dollars And Sense?

23 07 2010

 PACIFIC REGION

2007 NATIONAL AVERAGES

 

 
Job Cost Resale Value Cost Recouped Project Midrange Job Cost Resale Value Cost Recouped
$55,306 $54,186 98% Attic Bedroom Remodel $46,691 $35,771 76.6%
$15,220 $9,681 63.6% Back-Up Power Generator $13,357 $7,748 58%
$70,064 $67,844 96.8% Basement Remodel $59,435 $44,661 75.1%
$43,884 $36,657 83.5% Bathroom Addition $37,202 $24,553 66%
$18,112 $17,500 96.6% Bathroom Remodel $15,789 $12,366 78.3%
$12,812 $13,836 108% Deck Addition – Wood $10,347 $8,835 85.4%
$92,710 $78,647 84.8% Family Room Addition $78,989 $54,148 68.6%
$63,485 $55,839 88% Garage Addition $53,897 $37,461 69.5%
$29,892 $20,584 68.9% Home Office Remodel $27,193 $15,498 57%
$61,122 $59,056 96.6% Major Kitchen Remodel $55,503 $43,363 78.1%
$116,134 $101,224 87.2% Master Suite Addition $98,863 $68,172 69%
$22,698 $23,494 103.5% Minor Kitchen Remodel $21,185 $17,576 83%
$21,360 $18,182 85.1% Roofing Replacement $18,042 $12,166 67.4%
$12,139 $10,061 82.9% Siding Replacement $9,910 $8,245 83.2%
$78,055 $54,164 69.4% Sunroom Addition $69,817 $41,231 59.1%
$160,637 $146,021 90.9% Two-Story Addition $139,297 $103,010 73.9%
$12,164 $11,978 98.5% Window Replacement – Vinyl $10,448 $8,290 79.3%
$13,120 $13,497 102.9% Window Replacement – Wood $11,384 $9,241 81.2%
 

 

Job Cost Resale Value Cost Recouped Project Upscale Job Cost Resale Value Cost Recouped
$83,573 $70,254 84.1% Bathroom Addition $73,145 $50,442 69%
$56,822 $48,139 84.7% Bathroom Remodel $50,590 $34,588 68.4%
$16,623 $16,354 98.4% Deck Addition – Composite $15,039 $11,672 77.6%
$95,213 $74,389 78.1% Garage Addition $82,108 $53,056 64.6%
$117,254 $104,241 88.9% Major Kitchen Remodel $109,394 $81,096 74.1%
$248,404 $192,084 77.3% Master Suite Addition $220,149 $141,120 64.1%
$38,414 $30,703 79.9% Roofing Replacement (steel) $33,151 $21,769 65.7%
$13,637 $13,766 100.9% Siding Replacement (fiber-cement) $13,212 $11,633 88.1%
$14,760 $11,855 80.3% Siding Replacement (foam-backed vinyl) $12,132 $9,668 79.7%
$15,743 $15,855 100.7% Window Replacement – Vinyl $13,479 $10,913 81%
$19,608 $20,270 103.4% Window Replacement – Wood $17,383 $13,784 79.3%

Source:   http://www.remodeling.hw.net/costvsvalue/pacific.html





Skip Schenker’s “Contractor Spotlight”: Orange County Kitchen And Bath Contractor Has Been Serving Southern California Since 1971 (Video)

22 07 2010

Customer Testimonial of APlus Kitchen & Bath. Please note that the video was filmed two years after the kitchen was installed.

A Plus has been in the home improvement business since 1971. They have gained the absolute highest ranking in the Better Business Buereau of a “AAA”. A Plus has been well known in the industry for their high quality custom kitchens, bathrooms, windows, and flooring. They strive to create the best quality experience for every customer and maintain knowledgable staff that will help A Plus customers get through their remodel with ease and little stress. Our company provides Project Coordinators, Schedulers, Purchasers, Engineers, Expert Draftsman, and A Plus certified designers that will help in making the right decision throughout a job. We are open 6 days a week: Monday-Saturday.

A Plus is located at :
401 E. La Palma
Anaheim, Ca. 92801

Factory Showroom Hours:
Monday-Friday – 8:00 a.m. – 5:00 p.m.
Saturday – 10:00 a.m. – 2:00 p.m.





Skip Schenker’s “Fund My Remodel”: Ten “Economical” Upgrades To Your Home That Will Make It Shine

20 07 2010

1. Make your kitchen really cook

The kitchen is still considered the heart of the home. For a few hundred dollars, you can replace the kitchen faucet set, add new cabinet door handles and update old lighting fixtures with brighter, more energy-efficient ones. If you have a slightly larger budget, you can give the cabinets themselves a makeover. Rather than spring for a whole new cabinet system, which can be expensive, look into refacing the ones you have. Many companies will remove cabinet doors and drawers, refinish the cabinet boxes and then add brand-new doors and drawers at a price considerably less than new cabinets. Unless the cabinets are mica, a fresh coat of paint can also do the trick.

2. Give appliances a face-lift

If your kitchen appliances don’t match, try ordering new doors or face panels from the manufacturer. Many dishwasher panels are white on one side and black on the other. It can be as simple as removing a couple of screws, sliding the panel out and flipping it over.

3. Buff up the bath

Next to the kitchen, bathrooms are often the most important rooms to update. They, too, can be improved without a lot of cash. Simple things like a new toilet seat and a pedestal sink are pretty easy for homeowners to install, and they make a big difference. You can replace an old, discolored bathroom floor with easy-to-apply vinyl tiles or a small piece of sheet vinyl — often applied right over the old floor. If your tub and shower look dingy, consider regrouting the tile and replacing any chipped tiles. A more complete cover-up is a prefabricated tub and shower surround. These one-piece units may require professional installation, but still can be cheaper than paying to retile walls and refinish a worn tub.

4. Paint

New paint makes everything look clean and bright again. And don’t forget the ceiling. Paint the trim a contrasting color. Another option: Paint a wall three different shades of the same color. Measure equal sections and use painter’s masking tape to mark off each area. Do the bottom of the wall first with the darkest shade. Once it dries, do the middle section with the next lightest shade and so on.

5. Step up your storage

Old houses, particularly, are notorious for their lack of closet space. If you have cramped storage areas, add do-it-yourself wire and laminate closet systems to bedrooms, pantries and entry closets. Firms such as ClosetMaid allow you to measure and redesign your closets online. You can also get design details and parts for these systems at many large home-improvement stores. Most closets can be updated in a weekend or less. In the end, your closets will be more functional while you’re living in the house and will make your home look more customized to potential buyers when you’re ready to sell.

6. Mind the mechanics

Finley Perry of F.H. Perry Builder in Hopkinton, Mass., advocates spending a few bucks on nitty-gritty stuff. “It’s often very worthwhile to hire an electrician and plumber for a couple of hours to look over your electrical services, wrap or fix loose wires, fix any faulty outlets, and check for and fix any water leaks,” Perry says. “Those details tell a buyer that someone has really taken care of the home and can really influence its price.”

7. Look underfoot

Carpeting is another detail that can quickly update a home and make it look cleaner. A professional carpet cleaning is an inexpensive investment, especially if your rugs are in good shape and are neutral colors. If your carpet is showing serious wear, cover it with inexpensive, strategically placed area rugs. Most real estate agents don’t suggest replacing wall-to-wall carpeting right before you sell your house unless it is truly hideous. The new homeowners may want to choose their own carpeting.

8. Let there be light

If you have boring recessed lights in your dining and living rooms, consider replacing one of the room’s lights with an eye-catching chandelier. Home stores offer a wide range of inexpensive, but nice-looking, ceiling fixtures. Add accent lighting instead of sticking with the two ordinary lamps that flank both ends of the sofa. Spotlights that plug into existing outlets can direct light to features you want to emphasize, like art or plants. If you have a ceiling fan and light, you can also buy replacement fan blades (leaving the fan body in place) to update the fixture’s look.

9. Reframe your entry

It’s the first thing you, and your guests, will see. Repaint or refinish that front door. If you have a basic steel front door that has gotten dented, consider replacing it with either another inexpensive steel door or a fiberglass, wood grain door for a slightly higher cost. Next, replace that worn, flimsy little knob on your main entry door with a more substantial-looking handle-and-lock set. A nice, big piece of hardware signals newcomers that this is a solid home. Then, place two large planters on either side of the front door, with a profusion of healthy plants spilling out. Look for foliage colors and blooms that complement each other. Go for different heights and textures, mix perennials and annuals, blooming and nonblooming varieties. If you want to add another touch, tie it in to the front door with a coordinating wreath.

10. Consider curb appeal

Although it sounds obvious, a nicely mowed lawn, a few well-placed shrubs and a swept walkway make a great first impression. As the saying goes, you never get a second chance to make a first impression. What buyers see when they first drive by your home is tremendously important. No matter how nice it is inside, they may never come back. If you don’t have a green thumb, consider hiring a landscaper to install some new sod, plant a few evergreen shrubs and give your front yard a good cleanup. These kinds of changes can instantly change people’s perception of your home and, therefore, increase its value and your neighbors will love you for it, too. 

 For more:   http://www.bankrate.com/finance/money-guides/10-quick-ways-to-upgrade-your-home-2.aspx





Skip Schenker’s “Fund My Remodel”: The Best Bathroom Remodels Are Well Conceived And Improve Lighting, Storage And Air Flow

20 07 2010

1. Create a plan, and stick to it

Evaluate how you plan to use the space, what kinds of materials and fixtures you want, and how much you’re willing to spend. Don’t begin your project until you have answers to every aspect of your plan.

The National Kitchen and Bath Association recommends spending up to six months evaluating and planning before beginning the actual work. Once work has begun — a process that averages two to three months — don’t change your mind. Work stoppages and alterations add costs.

2. Keep the same footprint

3. Make lighting a priority

Well-designed bathroom lighting surrounds vanity mirrors and serves to eliminate shadows on faces. The scheme includes two ceiling or soffit-mounted fixtures with 60-75 watts each, and side-fixtures or sconces providing at least 150 watts each distributed vertically across 24 inches to account for people of various heights. Four-bulb lighting fixtures work well for side lighting.

4. Clear the air

A bathroom vent should exhaust air to the outside, not simply to the space between ceiling joists. Better models have whisper-quiet exhaust fans and humidity-controlled switches that activate when a sensor detects excess moisture.

5. Think storage

Free-standing, multitiered shelf units designed to fit over toilet tanks can transform unused wall area into storage. Spaces between wall studs can be used to create niches for holding soaps and toiletries. Install shelves over towel bars to use blank wall space.

Inexpensive woven baskets set on the floor provide a stylish way to hold towels. A floor-stand coat rack can be used to hang towels, bathrobes, or clothes. Adding a slide-out tray to vanity-cabinet compartments gives you full access to stored items, and prevents lesser-used items from being lost or forgotten.

For more:   http://seattletimes.nwsource.com/html/homegarden/2012395075_remodel22.html








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