One of the things I love most about my neighborhood is the abundance of Craftsman style of homes.
I live in a Craftsman style bungalow myself.
I bought my home already renovated and gave the investor a load of profit.
If I had only known about FHA 203K & Fannie Mae Homestyle renovation loans things would have been a lot different.
I would have been able to avoid paying an investor his cut, I would have been able to put my own touches on the home, I would have been able to ensure quality workmanship and MOST importantly I could have ensured my house was energy efficient and environmentally friendly! However, renovation your own home isn't easy, you need to plan, prep and surround yourself with the right team of experts to ensure success.
Planning & Team Building Renovating a home is not a one man job, you need a TEAM.
How do you build a winning team? Unless you have lots of cash you'll need to start with financing.
Financing green renovation projects requires special loan products, like FHA 203K and Fannie Mae Homestyle used in conjunction with an Energy Efficient Mortgages (EEM).
Not all lenders offer these products and even fewer have the knowledge, expertise and connections to pull it off.
When it comes to choosing a renovation lender you need to do you due diligence and research thoroughly.
You lender show be able to produce before and after pictures of previous loans closed.
They should be able to answer questions without hesitation.
They should be able to ensure that the renovation draws are issued in a timely manner.
If they can't provide these things you need to keep looking.
Once you feel secure that your renovation lender has the goods to get your loan done you need to start gathering the rest of your team.
If you are purchasing then your next addition is your Realtor.
You may already have a Realtor in place, that is fine, but they need to understand the process and communicate well with your lender.
If you don't have a Realtor then ask your renovation lender.
Successful lenders know successful Realtors so you can always get good recommendations there.
However, sometimes your lender may be in a different location then you are and may not be able to connect you.
In this case you'll need to do your own research.
Social media, blogs, word of mouth and referrals are the best way to go.
If your green renovation is a refinance then obviously the a Realtor is not always needed.
However, in a refinance situation a Realtor is great source of information on after repair value which can play a key part in getting your loan done.
Choosing a General Contractor Some of you are probably asking "don't I need an Architect first"? The answer is yes and no.
Quality General Contractors either have an Architect on staff available at a reduced costs if you use their services OR know plenty of good Architects to refer.
In my opinion, it is best to speak with a General Contractor first to get an idea of a ballpark dollar amount they expect your renovations to cost.
You want to make your expectations fit your budget.
However, don't expect an exact quote without drawings.
Choosing an Architect As I said before, really good contractors have really good connections with really good Architects.
However, don't blindly accept a General Contractor recommendation.
Make sure your choice for ANY green renovation is LEED certified.
Check their work, visit past projects and contact previous customers to ensure you make the right choice.
Make sure they are comfortable with the way funds are disbursed on FHA 203K & Homestyle renovations as well.
Once you figure out the financing and select the rest of your green renovation team you'll be able to start on the fun part; the design.
In the next part of our series we'll discuss what materials to use, how to improve energy efficiency and what renovations add the most value.