How does the program work?

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 In general, the benefit of ordering a Feasibility Study lies in its ability to provide the borrower or prospective homeowner with specific information about the property and the cost of repairs or proposed construction to the same. It is also often used as the basis for making the proper investment decision by the lending institution, as it helps illustrate the potential future value of the property. 

The report details the extent of the proposed rehabilitation and the cost of repairs. It is considered an extremely prudent practice to have this report on hand before submitting a formal offer to purchase. It ensures a buyer knows what is needed to complete the project, allows the seller to determine what they are willing to repair before listing the property to maximize their potential sale price, and increases an agent's success rate when showing distressed homes. 

How does it work?

· Your HUD consultant will walk the property, identifying health and safety concerns along with the items you wish to repair or add to the property. 

· The compilation of costs with descriptions of each part of the project will be presented in an easy-to-read line-item fashion, also detailing what the labor and material costs look like for the improvements. 

Once you have received the report, you can use it to inform your decision-making process, allowing you to determine if this is the right home for you or if you feel it is best to continue looking. 

Advantages for the homebuyer include establishing the required repairs on a property to meet HUD’s minimum standard. The buyer can also address upgrades to the home's systems or dated items like kitchens and baths, which can make all the difference in the functionality of a home. This often leaves prospective buyers feeling like the home was specifically designed for them. With the report in hand, a buyer can seek out competitive bids from contractors, allowing them to compete for the opportunity. The Consultant that completed the report is usually willing to assist in evaluating the merit of each contractor's bid, pointing the home buyer in the right direction. 

A Real Estate Agent who works with distressed properties & REO’s can use the information found in a Feasibility Study to assist in establishing a homes market value and asking price. It is a strong addition to the presentation of a home because it allows the perspective buyer insight into what the required repairs look like from the beginning. This has been shown to help sell more homes due to the establishment of proper expectations from the very beginning. An agent should consider aligning with a lender who specializes in the available renovation programs including the 203k so as to provide a seamless and smooth purchase process for their borrower and future referral partner. In addition, the Feasibility Study may eliminate the need for a home inspection. As an alternative a consultant can complete a full Work Writeup accounting for any additional upgrades and changes sought by the home buyer. 

Believe it or not all parties, including the seller, potentially benefit from a Feasibility Study. Knowing the extent of required repairs on a property can allow a seller to leverage the after improved value as a mechanism for negotiation. It can also allow for the seller to address some or possibly all of the deficiencies if it makes sense to perform the improvements prior to listing. 

In the end the information contained in this report and the potential future Work Write Up will be used by an appraiser to establish the after improved value of the property which will be leveraged to validate the homeowners borrowing power. If future value does not support the cost of repairs the buyer will know that it is in their best interest to look for another property or potentially renegotiate the purchase price. 

Aging in Place is possible with an FHA, Conventional, or VA Renovation loan.

Most seniors would rather stay in their own homes than move to a nursing home. AARP states that 90 percent of people over 65 want to remain in their homes if possible. At the same time, 80 percent believe they will always live at their current home.

As people age, they often suffer from poor health or mobility problems that make it hard to live as normally as possible every day. For example, they might have trouble making it up and down the stairs or getting into a regular bathtub/shower. Eventually, some seniors’ poor health may force them to leave their homes and move into an assisted living home or with relatives.

Family First Funding has options to help seniors plan to age in place. These changes, large and small, can be made with one of our Renovation loans to ensure your home fits your lifestyle for many years to come.

The bathroom: Making changes to the bathroom to prevent slips:

· Most changes seniors think of first is how to modify the bathroom to prevent slips and falls. You can make the bathroom safer by:

· Installing grab bars in the bathtub, shower, and toilet area

· Raising the toiler to a comfortable height

· Installing walk-in bathtubs

The Kitchen: Make sure you can modify your kitchen to keep everything within reach.

· Are the cabinets and cupboards lower and able to reach better?

· Can I reach almost everything without a dangerous step stool?

· Is the dishwasher height comfortable to load it?

· Can I reach the stove and counters from a seated position (in case you might need a wheelchair in the future?

Handling regular maintenance:

· Seniors might want to make modifications to their yards by removing or cutting larger trees

· Installing more Zero Scaping

· Ensure your plumbing and electricity are up to code and can be of service for another 20-30 years.

Considering all these changes is how you can determine how long you can live in your home comfortably as you age.