How does the program work?

---

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, including the costs of repairs or proposed construction. This study also serves as a crucial tool for lending institutions, helping to illustrate the potential future value of the property and aiding in making informed investment decisions.  

The report details the extent of the proposed rehabilitation and the associated repair costs. It is considered prudent to have this report on hand before submitting a formal offer to purchase. Having this information allows a buyer to understand what improvements are needed to complete the project. It enables sellers to determine what repairs they are willing to make before listing the property, maximizing their potential sale price. Additionally, it increases a real estate agent’s success rate when showing distressed homes.  

How Does It Work? 

Your HUD consultant will walk through the property, identifying health and safety concerns along with the items you wish to repair or add. The report will compile costs with descriptions of each project component, presented in an easy-to-read line-item format, detailing labor and material costs for the improvements.   Once you receive the report, you can use it to inform your decision-making process, helping you decide if this home is right for you or if you should continue your search.  

Advantages for Homebuyers 

One of the advantages for homebuyers is determining the necessary repairs to meet HUD’s minimum standards. Buyers can also upgrade the home’s systems or update dated items, such as kitchens and bathrooms, which greatly enhance the home's functionality. This often gives buyers the feeling that the house was designed specifically for them. With the report in hand, buyers can seek competitive bids from contractors, allowing them to compete for the work. The consultant who completed the report is usually willing to help evaluate the merits of each contractor's bid, guiding the homebuyer in the right direction.  

A real estate agent working with distressed properties and REOs can utilize the information found in a Feasibility Study to help establish the home’s market value and asking price. This report enhances the presentation of a house by providing prospective buyers with insight into the required repairs from the very beginning. This transparency has been shown to help sell more homes because it sets proper expectations early on. An agent should consider partnering with a lender who specializes in available renovation programs, such as the 203k, to ensure a seamless and smooth purchasing process for their clients. Additionally, the Feasibility Study may eliminate the need for a separate home inspection. Instead, a consultant can complete a full Work Write-Up that accounts for any additional upgrades and changes sought by the homebuyer.  

Surprisingly, all parties—including the seller—can benefit from a Feasibility Study. Knowing the extent of needed repairs allows the seller to leverage the potential increased value of the property in negotiations. It also enables the seller to address some or all of the deficiencies if improvements are sensible before listing the property.   

Ultimately, the information contained in this report, along with the potential future Work Write-Up, will be used by an appraiser to establish the property’s after-improved value. This value will be leveraged to validate the homeowner's borrowing capacity. If the future value does not support the repair costs, the buyer will know it is in their best interest to look for another property or consider renegotiating the purchase price. 

Are you interested in purchasing a home that needs repairs? Have you found a property with great potential but lacking proof of proper maintenance? Renovation lending options can provide you with the essential tools you need to buy homes in this condition while also financing the necessary or desired repairs.  

Given the current inventory constraints and limited opportunities in the market, renovating a home that others may overlook can be an excellent way to capitalize on a great opportunity. Additionally, once renovated, these homes often offer a significant return on investment, yielding equity that could take years to achieve through more traditional purchasing methods.  

Another significant advantage is that you won’t need to convince a seller to complete the necessary repairs before the sale. Plus, you can avoid seeking additional financing options, such as credit cards or home equity lines, which typically carry higher interest rates and may not allow you to leverage the improved value of the home.  

Your renovation team has the financing options you need! Are you ready to take advantage of this opportunity?  

If you’re in the market and have found the right home, but it requires extensive repairs and upgrades, a renovation loan is precisely what you need to make your dream of homeownership a reality. This loan will cover both the cost of the property and all necessary repairs and upgrades, making it a more cost-effective solution for financing your home improvements.  

Here are some examples of allowable home improvements and repairs:  

• Remodeling bathrooms or kitchens, including installing new built-in appliances  
• Replacing roofing, gutters, and downspouts  
• Adding family rooms, bedrooms, or bathrooms, including an accessory dwelling unit (ADU)  
• Replacing flooring, tiles, or carpeting  
• Completing a basement or attic conversion, or adding a second story  
• Expanding or building a garage or carport  
• Renovating a deteriorating property, such as repairing a chimney, addressing termite damage, or resolving structural problems  
• Upgrading home systems, including plumbing, heating, air conditioning, and electrical  
• Eliminating health and safety hazards, such as lead-based paint, mold, or asbestos  
• Making the home accessible for disabled individuals  
• Making ADA upgrades for the aging population  
• Installing a well or septic system  
• Adding or repairing siding or repainting  
• Installing energy-efficient windows or doors  
• Repairing an existing swimming pool  - And much more! 

Most seniors prefer to stay in their own homes rather than move to a nursing home. According to AARP, 90 percent of people over the age of 65 want to remain at home if possible, while 80 percent believe they will always live in their current home.  As people age, they often encounter health issues or mobility challenges that make it difficult to maintain their daily routines. For instance, they may struggle with stairs or have difficulty using a regular bathtub or shower. In some cases, declining health may eventually require seniors to leave their homes and move to an assisted living facility or live with family members.  Family First Funding offers options to help seniors plan for aging in place. With our Renovation loans, you can make both large and minor changes to your home, ensuring it continues to meet your lifestyle needs for many years to come. 

The bathroom:  Making Changes to Prevent Slips

Many seniors consider modifications to the bathroom as a primary step to prevent slips and falls. You can enhance safety in the bathroom by: 

• Installing grab bars in the bathtub, shower, and near the toilet. 
• Raising the toilet to a more comfortable height. 
• Installing walk-in bathtubs. 

The Kitchen:  Ensuring Accessibility.

 It is essential to modify your kitchen so that everything is within easy reach. Consider the following questions:  

• Are the cabinets and cupboards positioned lower for easier access? 
• Can I reach most items without needing a dangerous step stool? 
• Is the dishwasher at a comfortable height for loading? 
• Can I access the stove and counters from a seated position in case I might need a wheelchair in the future? 

Handling regular maintenance:

 Seniors may want to consider making changes to their yards by removing or trimming larger trees. Additionally, consider:  

• Installing more xeriscaping (drought-tolerant landscaping). 
• Ensuring that plumbing and electrical systems are up to code and capable of serving your needs for the next 20 to 30 years.  

By considering all these modifications, you can assess how long you can comfortably live in your home as you age.