HomeStyle, 203k, and other renovation loans for first time buyer

[Alec Anderson]

Hello, I'm looking to purchase my first home and am looking for any input on these types of loans. My plan is to live in the property while doing some small to medium type renovations (upgrade kitchen, put in hardwood flooring, other minor cosmetic things.) I don't plan to keep the house more than a few years. Would it make more sense to get a loan with a smaller down payment and pay for renovations myself, or to finance the renovations with this type of loan? I would like to do as much of the work as I can on my own, to learn how to do these things and to save labor costs. I will also be renting out a few bedrooms to family while I'm living there, so i would probably be able to save up 500-1000 of my own money, per month, towards renovations or else save it for the next house/investment. 

I'm very new to this, so i apologize if the information is too vague haha, any input would be greatly appreciated!

[Martha Chavarria]

Hi there, I would say, it would depend highly on what your inspection report says about the condition of the home. There are some areas that you can do on your own. But leave the more intricate and sensitive parts of updating your home to the professionals. As far as a 203k loans, let me assure that you can only utilize this loan with a bank-approved contractor. I've gone through process myself with Wells Fargo and my company happens to be one. I would consider giving priority to areas that requires immediate attention and perhaps get a loan for that and leave some of the work you know you can handle for yourself. Remember, that there are some things you should leave to the professionals. Your safety and that of your family is worth more. Good luck!