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Q: Is it hard to qualify for the 203(k) loan?
 
A: This loan is actually an FHA loan and one of the easier loans to acquire.  Being that it's an FHA, you only need a 3.5% down payment and the loan-to-debt ratio requirements are much less strict than a conventional loan.

Q: Will I still be responsible for paying town permits, architectural fees, etc.?
 
A: All of the fees that are associated with the renovations are covered in the loan including any and all permits and variances that may be required for the project.  Jenne Construction will handle obtaining them all.

Q: I currently own/rent a home and I am looking to utilize this program for my next house.  However, I can't afford to make double payments on both houses while the construction is being completed.  How can I make ends meet?
 
A: With the 203(k) loan, you can actually include the monthly mortgage payments you would be making during construction into the loan as well.  For example, if the renovation is scheduled to take 2 months to complete, you can wrap your first two mortgage payments into the loan.  This way, you won't make your first mortgage payment on the house until you actually move in.

Q: Why should I bother buying an outdated home or a fixer-upper and go through the renovation process when I can just purchase an updated, turn-key house that's move-in ready?
 
A: Purchasing a home is a big decision and there are two aspects of the process you really need to consider: am I going to enjoy living in the home and is it a good financial decision?  This is important because if you're going to make a large investment, you want to make sure the house will meet all of your needs and be the perfect place to call home.  Additionally, your house is your biggest financial asset and it's important to buy right.
 
Now when looking for a turn-key home, you will most likely need to make compromises because no house will match all of your needs, wants, or sense of style.  You may find a great home, but the kitchen's a little small.  Or you like the house, but it's located on a busy road.  These often become the tough decisions you will have to make.
 
In financial terms, homebuyers think that since we're in a "buyer's market", they can get a great deal on any house they look at.  Fact is, homes that are updated and look great are still selling at a high price (compared to the rest of the neighborhood) and are often receiving multiple offers.  Additionally, whatever price you finally get on the home will invariably be its current fair market value.  The only equity you'll have in the home after closing is your down payment.
 
On the flip side, buying a house that needs work can solve both these issues.  Financially speaking, homes that need work or are outdated tend to stay on the market longer and get passed up by homebuyers.  These are the houses that buyers can really take advantage of to get a great deal.  Then, after renovations are complete, you will have added significant value to the home thus increasing the equity.  It's the same basic concept that investors use to buy, fix, and sell properties--the profit is in the renovations!
 
Finally, when it comes to livability, you don't need to compromise on the features because you can simply add them in to the home.  You will now have the ability to customize the house to fit all your needs and create a living environment just for you.  Imagine being able to create the kitchen of your dreams or converting the master bedroom into a suite.  Instead of trying to decide which features you'll have to learn to live without, you'll now be able to decide on adding features you'd never thought you'd have!  Trust us when we tell you, it's a lot more fun adding features than compromising.

Q: I've never had a home renovated before and I'm a little intimidated by the process.  Is there a lot I need to do for such a project?
 
A: With our program, not at all.  If you were to do this on your own, you would have a large task of finding the right mortgage broker who could provide this type of loan at a good rate.  Then, you would need to contact an architect if there were structural components to the project like building an addition.  Finally, you would need a contractor who is familiar with these types of projects.  This would obviously take some time and considerable work on your part.
 
However, our program brings all these components together into one streamlined process.  We handle everything from the design, to working with our mortgage broker who can get you the best rate, to doing the construction quickly and up to the highest standards.  The only "work" you'll be required to do will be deciding what you would like us to put into the house as well as picking out things like wall color, tile, etc. (unless, or course, you'd like us to pick those out for you--but that would take all the fun out of it!).  With Jenne Construction, this process is actually easy and very enjoyable.