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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 more aesthetic needs. However, there is
a lot of documentation necessary, and you will need detailed plans to show how
you intend to spend the money, so these loans are not always easy to come by.
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 tradespeople
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. His industry
connections mean that even
Construction Insurance
A crucial investment during any home though he is charging for his services,
he can negotiate discounted
improvement project is construction
insurance. Sold in 30-, 60-, or 90-day pricing for individual segments of
increments, construction insurance the project to keep costs down.
is relatively expensive – possibly as An individual tradesman, on the
much as your annual homeowner’s other hand, can offer an added
insurance premium — but it covers degree of flexibility and get some
any accidental damage to the house. jobs done faster and more efficiently
than a large crew. Some-
For example, if a pipe bursts and
floods part of the house, even away times, his prices will be lower as
from the construction area, the policy well.
will cover the damage.
If you have a complex project or
numerous renovations to accomplish,
you will probably want a contractor to oversee the myriad unfamiliar
details.
Whichever type of tradespeople you choose, verify that they are licensed and
insured. If a worker damages something in your house — for example, cracking a
pipe while installing a closet — you will probably be much better compensated by
an insured worker, who does not want a claim on his insurance record.
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