Scott Storace - Branch Manager, 100 Pacifica Drive Ste. 140, Irvine CA 92618 NMLS #226339 949.973.0141

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FHA 203k – Give Your Home a Million Dollar Feel

It’s said that a picture is worth a thousand words. But this picture is worth a lifetime of memories! Which of the 2 homes below would you prefer?

Bachelor Pad

 This Orange County homeowner upgraded from a house to a home in 21 days for only $200/month. This is the FHA 203k story. And for this gentleman it’s a tale of new beginnings.

The owner of this house lived there for 10 years with his brother. They beat it up. It was the quintessential bachelor pad. But when he planned on proposing to his girlfriend he knew that changes were required. What he needed was a fresh start for he and his bride to be. The solution was to breathe new life into the house with some simple and affordable remodeling.

Bridal Suite

He removed the beam, added fresh custom paint, replaces the carpets, installed crown molding, cut-in some new can lights and replaced hardware for under $35,000.

How can you do the same? The answer is an FHA 203k and a good designer. Whether purchasing or refinancing you can give your house that million dollar feeling for only dollars a day. Updating the basics like paint, carpet, molding and lighting can do wonders to the feel of your home. Simply looking at the two pictures above evokes a strong emotional response. The remodeled home is warm, spacious, inviting and cozy. You would be proud to host guests at this home.

 This is what the homeowner had to say about his experience. As you’ll see his design/builder Bill Frey was instrumental in the process.

Bill and his crew were extremely professional to work with and their skill set was exceptional.  They were able to work with a short timeframe I had to get my house ready for a Memorial Day get together with family and a surprise engagement I was planning to my fiancé while both our parents were visiting. Not only did Bill keep the secret of the engagement, but he and his crew worked overtime to get the job done in time for the arrival of both my fiancés’ parents and my family.

To top it off, Bill helped guide my fiancé and me through the remodel and design process while I was running around like a crazy man getting ready for our parents to visit and as I was shopping for an engagement ring.  During this stressful time, he was able to help us make educated decisions when we came to a few cross roads in the renovation. His big picture insight and amazing eye for detail made the process go smoother than I would have ever expected, and we are beyond grateful for his help.

Needless to say, Bill went above and beyond to turn my, “Animal House” bachelor pad into an amazing home for my future wife and me. We love coming home every day to the serene atmosphere that Bill helped to create. He knew that the steps being taken weren’t just a home remodel, but the beginning of two lives coming together as one. It was very apparent that he took pride, not only in his work, but in knowing he was helping us in the first steps of our lives together. Thank you Bill!!!

Serenity

Sincerely,

Marc & the future Mrs…

 

 

Let’s dive into the technical details here on the FHA 203k. You can build up to $35,000 into your loan with an FHA 203k loan. If you’re refinancing you’ll need 2.25% equity. On the flip side you’ll need 3.50% down if you’re purchasing a new home and adding your remodel costs into the loan. You can read all the details of an FHA 203k here. This would also work the same for FNMA Homepath Renovation loan.

Let’s give a quick comparison. Let’s assume you were to purchase the condominium above for $425,000 using a standard FHA loan.

3.50% Down Payment =$14,875.00

Monthly Payment (P&I + MI) = $2,268

Now let’s add our remodel costs to the loan. How does that change things financially? With our FHA 203k we’re looking at:

3.50% Down Payment = $16,100.00

Monthly Payment (P&I + MI) =$2,464

So this Orange County resident was able to use an FHA 203k loan to start a new life for he and his bride. The cost was a mere $200/month and $1,225 up front. It’s easy to do and well worth it. The emotional value alone is priceless. Look into an FHA 203k loan or contact me. I’ll be happy to show you how you can build your own fairytale.

Scott Storace

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