Pavolony Construction – 203(k) Renovations
What is a 203(k) Renovation?
The Federal Housing Administration’s rehab loan product, the FHA 203(k) loan, was designed for individuals who want to rehabilitate or repair a damaged home so they can live in it as their primary residence. These loans are endorsed by the government to encourage lenders to offer what would otherwise be considered a risky loan product. Because of the risk and expense involved, rehab projects are normally handled by professional real estate investors who can buy properties with cash and therefore don’t need any bank to approve the property’s condition.
Pavolony Construction will work with your lender to help complete the paperwork and follow-up to do your home repairs and additions. The FHA 203(k) loan lets you include the money needed for repairs and related expenses in the loan, such as materials and labor. If you wanted to buy a home in which the kitchen had been ripped out, you could include in the loan the price of new cabinets, countertops, flooring, a fridge, stove, oven, microwave, sink, dishwasher, garbage disposal, and the cost to design, permit and install it all. The loan can also include a 10-20% contingency reserve for expenses above and beyond your repair estimates. You can also get up to six months’ worth of mortgage payments included to cover the mortgage while you’re renovating the home, so that you won’t have to make a double housing payment.
For this project we started with an older house, built a new foundation and on the foundation created a new garage and additional rooms including a master bedroom and office. We rebuilt the deck with new access steps and finished the whole house with new siding.
Was the client happy? Read their testimonial here… (Laura and Mike P., Lake Hopatcong)