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Factors to Consider Before Renovating

August 28, 2019 — 4 min read

Whether you're doing a full demolition or simply redoing the kitchen layout, there are multiple factors you should consider before renovating your home.


If you have plans to complete your renovation by a certain holiday or date, you'll definitely want to add some wiggle room to your schedule. This way, you won't be blindsided and left without a kitchen on Thanksgiving. Or without a living room for your Christmas tree during the whole month of December. You'll need to communicate this timeline to your contractor and anyone else involved from the start of the project. Clearly state your intentions and plans. If you're going through an entire home renovation, it's most helpful to break the overall project up into phases. For example, knocking down the living room wall is "Phase One" and needs to be done on June 10th.


If you have kids or pets, you'll need to think about the functionality of your home in extreme detail. In most cases, you could be fine without a backyard. However, if you have pets that spend time outside, you may need to arrange other plans for them during the renovation process. Or, if you have multiple kids, summertime might not be the best time to renovate the living room and kitchen. Wait until the school year to begin a project like this.


Can you cover the costs of your renovation project out-of-pocket, or will you need additional financing to complete the project? For something simple like remodeling a bathroom, the average cost will land anywhere between $9,000 to $15,000. However, to renovate an entire home, the national average is said to be about $46,000, with high-end nearing $150,000. Luckily, there are multiple financing solutions available to homeowners looking to make renovations from minor remodels and accessibility improvements, to structural additions and major landscaping.

FHA Streamline 203K

The Streamline or Limited 203K loan is an FHA loan, which means the loan is government-backed. This particular loan allows up to $35,000 in repairs and renovation. Some common repairs and renovations you could use a Streamline 203K loan for include:
  • Lead paint or mold remediation
  • Minor remodeling
  • Decks, patios, porches, fences, walkways, and driveways
  • Flooring and appliances
  • Siding, window, or door replacement
  • Plumbing, electrical, or HVAC
  • Roof, gutters, or downspouts
  • Accessibility improvements

FHA Full 203K*

The Full 203K allows for more complex renovations, as well as rehab work that is more expensive than the $35,000 limit of the Streamline loan. (A full 203K loan requires the use of a HUD consultant.) A few of the repairs the loan allows are:
  • Structural additions or alterations
  • Minor foundation issues
  • Major landscape work and site improvement
  • Termite or Pest issues

Fannie Mae HomeStyle Renovation Loan

Unlike FHA loans, HomeStyle works for investment properties and second homes. Allowable repairs range from simple remodels through structural improvements and upgrades, including, but not limited to, the following:
  • Build a garage, pool house, or free-standing Accessory Dwelling Unit
  • Build luxury items
  • Final work on a newly built home

Hidden Costs

Are you prepared for the potential costs that could come with your renovation? Before you let just anyone start tearing out drywall, you'll want to:
  • Price shop and compare rates
  • Ask for recommendations
  • Read online reviews
Once you finalize your budget and meet with a contractor, ask plenty of questions. What if the project requires more time than you thought? What if you need more materials than originally planned? You'll need to make room in your budget for potential delays and changes to the original plan.

Neighborhood Consistency

If you're renovating to hopefully sell your home in the near future, you'll want to take the look and feel of the neighborhood into consideration. Invest in quality finishes and features that will increase the quality of your home.

We're here to make the financing process the easiest part of your renovation. Contact a Mortgage Advisor today for more information.

*This product is offered via a lender partner/broker channel. Subject to the terms and conditions of that lender, not Pacific Residential Mortgage, LLC. Not all applicants will qualify. This is not a commitment to lend, terms and conditions can change without notice.
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