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The FHA also offers insured loans for home improvements. Through the Title
I program, you can borrow up to $25,000 for a single-family home.
If you would like to buy a home that needs major repairs, inquire whether
an FHA 203k loan would be appropriate. This product, from the Federal
Housing Administration, covers the cost of the house as well as additional
cash for the necessary repairs. Depending on the exact type of loan, these
could be major structural repairs, or painting and other such minor aesthetic
improvements. However, there is a lot of documentation necessary, and you
will need detailed plans to show how you intend to use the money, so these
loans are not always easy to obtain.
Before approving a construction loan, the lender will typically want to see
the construction plans, timetable, and budget, and will then supervise the
construction to ensure all is proceeding as planned.
As with any major loan, a qualified professional can always provide advice
most suited to your situation.

Choosing a Contractor
When pricing renovations, you may find yourself debating the merits of hiring
a contractor to oversee the project, versus a handyman or individual trades-
people with their own specialties.
‹ A contractor brings a broad range of experience to each job, which can
be helpful for coordinating work and longer-range planning. Additionally,
by paying for a contractor’s services, you benefit from his industry
connections, as he can negotiate discounted pricing for individual
segments of the project to keep costs down.
‹ An individual tradesman, on the other hand, can offer an added degree of
flexibility and get some jobs done faster and more efficiently than a large
crew. Sometimes, his prices will be lower as well.

If you have a complex project or numerous renovations to accomplish, you
will probably want a contractor to oversee the myriad details.

License and insurance: Whichever type of tradespeople you choose, verify

100 | 2020 Lakewood Home Buyer’s Guide