Include Remodeling Costs In Your Home Loan

With homes prices down, many people that couldn’t afford to purchase a home a few years ago can now. One of the challenges my clients and I are running into is a good majority of the homes in the $100,000 – $150,000 price range need a lot of work. When you can only afford to spend $125,000 on a home, chances are you don’t have an extra $10,000 in the bank to pay for the improvements that are necessary. Fortunately, the FHA 203k loan can help with this. 

Dave Woodland with Signet Mortgage in Bend shared some of the details of this loan. With a down payment as low as 3.5%, a home buyer can finance the cost of the improvements into a 30-year fixed rate home loan. The mortgage amount is based on the projected value of the property after the work is completed. The improvements can be major, like a kitchen or bathroom remodel, new roof, or can be used for appliances or cosmetic fixes like painting. You can hire a contractor to do the work or tackle it yourself if it’s determined that you are qualified. 

I can’t tell you how many homes I’ve seen lately that have been stripped of appliances and fixtures, vandalized, or could be great properties with a little (or a lot) of TLC. This is a wonderful loan program for those properties. If you’d like to take advantage of this loan program, Dave has the details. Send him an email or give him a call at 541-318-0888. If you’d like a list of properties that could use a little love, please contact me at or 541-788-8997.



  1. This is about easing the pressure on borrowers in a responsible way, but still most of the borrowers who might like to use the program to refinance their mortgages are facing substantial hurdles. You need to have an unblemished record of on-time mortgage payments for the last 12 months. Maybe you were late occasionally a couple of years back. That’s OK. But the last 12 months need to be pristine. That’s why it is imperative that you work with a specialist and someone with a track record like Cheri Smith, an experienced Realtors would be a great help

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