You have lived in or around Dublin, CA for a few years now. With the drop in home values across the Tri-Valley, you have decided to stay in your home for years to come. The bathrooms and kitchen are outdated, and the home can sure use some energy efficient upgrades. If you have been putting off some home improvements because you do not have enough money on hand, wait no more. The FHA has the 203(k) program that offers homeowners loans to rehabilitate or repair their homes, so they can live in it as their primary residences. These loans are endorsed by the government to encourage lenders to offer what would otherwise be considered a risky loan product.

How Does the Remodel/fixer upper Loan Work?

With its high loan limits across Alameda and Contra Costa counties, many homes in Dublin could benefit from the FHA 203(k) construction loan. This program had fallen out of favor during the real estate boom years due to aggressive competition from commercial construction lenders. Since the subprime mortgage crisis, commercial lenders have significantly tightened their lending standards. The limited commercial loan products available now have much lower loan amounts, which make them almost useless for most homeowners in Dublin.

With the government insured 203(k) loans, you can amortize the home improvement cost over the life of your home loan. The loan value will be based on the projected value of the property with the work completed. Given that interest rates remain at a historic low, a typical homeowner will add roughly $6 a month for every $1,000 in repairs or renovations financed. For a $10,000 roof, you only have to pay an additional $60 a month to your monthly mortgage payment.

Eligible Repairs & Improvements

The 203(k) loan program by the FHA allows for projects from simple repairs to complete remodeling. Some qualifying examples include:

• roofs, gutters, and downspouts
• HVAC systems (heating, venting, and air conditioning)
• plumbing and electrical
• kitchen and bath remodels
• flooring upgrades: carpet, tile, wood, etc.
• interior and exterior painting
• new windows and doors
• weather stripping & insulation
• energy-efficient and green improvements
• new decks, patios, and porches
• purchase of new kitchen appliances or washer & dryer

We at Vintage Mortgage Group in Pleasanton have closed over five hundred 203(k) loans. I love helping out my neighbors in the Tri-Valley. Please call me at (925) 708-5400 or email me at brian@vintagemortgagegroup.com, so we may start planning your mortgage and turn your remodeling wishes into reality.