Home Remodel/Addition Advice

[Benton]

(03-25-2016, 01:01 PM)BengalHawk62 Wrote: We are thinking of adding a large addition onto the house here this summer.  We've drawn up a couple different sketches with all of our ideas and have a couple contractors coming out to take a look at this to see if its even economically feasible.  What's the next step?  If the contractors come back saying ya, they can do this project within our budget, how do we get the funds to purchase this project?  We will have to take out a loan of some kind, but how does that loan work?   
Any advise on how to keep the overall cost of the project down would be appreciated.  The current house now is a little over 700 square feet and the new addition we have in mind is somewhere between 800-1100 square feet, no basement.  We want to add a big living room, a master bedroom and a big bathroom.  Also including a few modifications to the old house.  In the kitchen, just adding a bigger window and a dishwasher.  And taking the tub/shower out of the small bathroom we use now and adding a stand up shower.  Removing the current front door and replacing it with a big window.  (we'll be adding a new front door in the addition.)  Oh, and building a 24x30 garage in the backyard. 


For you folks in the know about line of work, what would your ballpark guesstimate be for this project? 

To the bold, you've got some options. If you've got equity in the house, you might be able to secure a home equity loan. Or talk to the bank and see if you can refinance. If you've got any equity in the home, plus the expected increase in value due to the renovations, you might be able to get it refinanced.

One thing to watch there is you may not get as good of a rate. Or you might get a better one.

You might also read up on FHA 203(k) loans. I think even though you already own the home, if you meet the other standards, you might qualify for one of those.

Either way, the easiest way is just sit down with a banker you trust. Have any paperwork you've got on your existing home loan, and any increases in assessed value. Also have the estimates given by the contractors. Usually a bank can tell you within a day or two what options you'll have.

As far as the cost, kind of hard to do that on a message board. But, in general, you're doubling your size, so expect to about double what you paid for the house. It's normally cheaper to built up than out, as it saves concrete costs, roofing costs, etc. And you wouldn't change the footprint so you wouldn't have to do as much landscaping work. What you're describing, though, sounds like roughly $70-$100,000. The garage alone (if just bare studs but with service) will be $25-30,000. Exterior materials make a big difference in the cost, as well as what type of roof it has.