Thinking of doing some home renovation in 2014? Well, you don't have to do it all on your own. Many mortgage lenders, like New American Funding, offer home improvement loans that can cover the cost of your remodeling, home addition and more. But, not all renovations are created equal. Learn which renovations will give you the most bang for your buck!

1. The Smartest Uses of a
Home Improvement Loan
in 2014

3. Home Improvements
Making improvements to your home can not only improve its livability, but can also add
beautiful touches to your house.
Choosing the right areas to upgrade can also attract the eyes of buyers and increase your
home’s overall value when it becomes the right time for you to sell.

4. Cost vs. Value
Historically, popular renovations take place in some of the most used rooms of the house:
Kitchens
Bathrooms
Master Bedrooms
While among the most expensive renovations, improvements to these rooms also tend to
have the best return on investment. You can see more about the most valuable
improvements in our presentation Cost-Effective Home Improvements.

5. The Front Door: A Place To Start
Sometimes the smallest change can have the
biggest impact.
On the National Association of Realtors’
annual survey of its members on the best
“bang for the buck” home improvements, the
simple act of improving the front door to the
home is expected to be 2014’s best
investment for home owners.
In addition to bumping the curb appeal of a
home, a steel door is an improvement in
security and energy efficiency over a wood
door. Plus, it requires less maintenance and
won’t warp in the elements.
http://www.realtor.org

6. http://www.realtor.org
Popular Projects - 2014 National Averages
Midrange Project Job Cost Resale Value Cost Recouped
Attic Bedroom $49,438 $41,656 84.3%
Backup Power Generator $11,742 $7,922 67.5%
Basement Remodel $62,834 $48,777 77.6%
Bathroom Remodel $16,128 $11,688 72.5%
Deck Addition (composite) $15,437 $11,476 74.3%
Deck Addition (wood) $9,539 $8,334 87.4%
Entry Door (fiberglass) $2,822 $1,997 70.8%
Entry Door (steel) $1,162 $1,122 96.6%
Home Office Remodel $28,000 $13,697 48.9%
Major Kitchen Remodel $54,909 $40,732 74.2%
Master Suite Addition $103,844 $70,121 67.5%
Minor Kitchen Remodel $18,856 $15,585 82.7%
Siding (vinyl) $11,475 $8,975 78.2%
Sunroom Addition $73,546 $38,011 51.7%
Window (vinyl) $9,978 $7,857 78.7%
Window (wood) $10,926 $8,662 79.3%

7. To expand homeownership opportunities and encourage community and neighborhood
revitalization, the Federal Housing Authority (FHA) offers the Section 203(k) program, its
primary program for the rehabilitation and repair of single family properties.
If you need to refinance your home mortgage, the FHA 203(k) Refinance Loan allows
current homeowners the opportunity to rehabilitate and improve their home. Whether
it be making a home handicapped-accessible, replacing your roof or upgrading your
kitchen, home improvement projects can raise the value of the property and allow you
to customize as your needs change.
The FHA 203(k) Refinance Loan allows you to cash out up to $35,000 for your home
improvement project, and the mortgage balance can exceed the current appraised
value of the home. You do not have to have an FHA home loan to qualify for the FHA
203(k) refinance loan.
Rehab A Home = FHA 203(k)
http://www.newamericanfunding.com/home-improvement-loans.aspx

8. FHA 203(k) - Projects
Removal of lead-based paint
Decks, patios, porches
HVAC systems (Heating and air
conditioning)
Landscape improvements
Basement completion
Basement waterproofing
Septic or well systems
New kitchen appliances
Washer/Dryer upgrades
Roofs, gutters and downspouts
Plumbing and electrical upgrades
Minor kitchen or bathroom
remodel
Add carpet, tile or wood flooring
Install new windows or doors
Weather stripping and insulation
upgrades
Disability improvement
Energy efficient upgrades
http://www.newamericanfunding.com/home-improvement-loans.aspx
The following list provides examples of projects that can be financed
through an FHA 203(k) Home Improvement Loan:

9. For an FHA 203(k), homeowners must plan to live in the home they
are repairing. All of the following types of types of residences
qualify:
Existing construction that is at least a year old.
Single-family, two-family, three-family or four-family dwellings.
Condos: if they have been approved for FHA loans.
Mixed-use properties: If you are repairing only the home
portion, a mixed residential/commercial property can qualify.
Homes needing to be moved to rest on a new foundation.
Tear-downs: As long as part of the foundation will remain,
houses that need to be destroyed and rebuilt are eligible.
http://hud.gov/
FHA 203(k) Eligibility

10. Smartest Uses of a
Home Improvement Loan
See What’s Within Reach With A Refinance Calculator
http://www.newamericanfunding.com/mortgage-calculators.aspx