Remodel

Financing a Major Remodel or New Construction

elieliresidentialcom Arlington, Buyer, Loan, Seller , 0 Comment
Financing a Major Remodel or New Construction

Question: We are deciding between buying a lot to build a new house on or expanding and remodeling our current home. Do you have a recommendation for a lender who can finance these projects?

Answer: Over the years, I’ve found that one of the best banks for construction or major remodeling loans, and a favorite amongst local builders, is Sandy Spring Bank. They are large enough to offer some excellent, customized products with great rates and local enough that relationships with builders and homeowners matter to the success of their business. That’s usually a good combination for a business, especially lenders.

I have worked with Skip Clasper (sclasper@sandyspringbank.com), a loan officer at Sandy Spring Bank, for years so I reached out to him to gather up some details on their popular construction and remodel loan products.

Remodel Loans

Sandy Spring Bank will give you a loan to finance the cost of your remodeling project based on the expected post-construction value of your home. Given how high market values are now, that means you can get a significant amount of financing to expand and remodel your home.

There are a few things that stand-out about the way Sandy Spring Bank handles these loans:

  • They offer 90% loan-to-value (LTV), meaning you can get financing for 90% of the future value of your completed home. Most banks limit their loans to an 80% LTV.
  • They accommodate a flexible draw schedule. Banks give borrowers/builders draws to pay for construction incrementally as the project progresses. Many banks offer their draws on a fixed schedule, but given the unexpected twists and turns construction can take, a flexible draw schedule makes for a better process for everybody.
  • You only pay interest on the money you have drawn from the loan so you only pay interest on the money you’ve used, not the money you will use
  • Interest rates are competitive with rates you will find on standard, non-construction loans. This is noteworthy because oftentimes specialized loan products require paying higher interest rates.

Construction Loans

A construction loan allows buyers more control over building a new home because it allows you to finance the purchase of the lot and construction yourself. That means you can purchase the lot you want (easier said than done) and choose the builder you work with, as opposed to hoping that the builder who acquires a lot you like is also a builder you want to work with.

Here are some highlights and key pieces of information about the Sandy Spring Bank construction loans:

  • You can purchase a tear-down/lot and finance the construction of your home with a single closing. After closing on the tear-down/lot, they will finance the construction, and then the loan will automatically convert into a permanent 30-year loan after the construction is completed.
  • The loan is interest-only until construction is completed, making your payments during the construction phase much lower
  • Sandy Spring allows cross-collateralization on construction loans, meaning they will include equity in your current home towards your future down payment when considering your loan application/qualifications for your construction loan
  • It will take 6-8+ weeks to finalize the loan on your tear-down/lot purchase, which may put you at a disadvantage in some cases if you are competing against buyers or builders who are paying cash or using a standard loan product that can close faster
  • All construction loans are Adjustable Rate Mortgages (ARMs), but can be refinanced into a fixed rate mortgage with a second closing
  • Interest rates are competitive with rates you will find on standard, non-construction loans. This is noteworthy because oftentimes specialized loan products require paying higher interest rates.

If you’d like to talk with Skip Clasper about Sandy Spring’s remodel, construction, or other loan products the best way to reach him is by email at sclasper@sandyspringbank.com or phone at 301-928-7523.

2020 Home Design Trends

elieliresidentialcom Arlington, Home Owner, Investor , , , , , , 4 Comments
2020 Home Design Trends

Question: What changes are you seeing in design trends this year?

Answer: Every year I look forward to the Pantone Color of the Year selection (released annually since 2000) and this year is one of my personal favorites – Classic Blue. I’ve noticed blues showing up a lot more in homes lately, especially in kitchens (it makes for a beautiful cabinet color, in my opinion).

Pantone Color of the Year 2020 Classic Blue & Steve

But trends go well beyond colors so for an expert opinion on the latest design trends, I’d like to re-introduce Caroline Goree (caroline@madiganschuler.com), a Designer with a boutique Residential Interior Design Firm, Madigan Schuler, located in Alexandria Virginia, to provide insight into what trends we should expect to see in 2020.

In 2018, Caroline introduced us to one of my favorite design quotes from Matthew Frederick’s book 101 Things I Learned in Architecture School, “Being nonspecific in an effort to appeal to everyone usually results in reaching no one.”

Take it away Caroline… 

Thank you, Eli. I am really excited for the trends we see happening in 2020 primarily because people are experimenting with color, textures and patterns much more than in the past few years. While those “safe” design decisions like all white kitchens aren’t necessarily going to go of style, I like seeing more personal flare and individuality come through. Below are some of my personal favorite trend hello’s and goodbye’s of 2020.

Goodbye One-Stop Shoppin’

Thanks to Restoration Hardware, the “all gray everything” trend was popular for the better part of the last 5+ years. Thankfully, that “one-stop shop” mindset is shifting to consumers wanting a more collected look.

Maybe that means a sofa from a known store, such as Restoration Hardware, mixed with vintage velvet club chairs found at Miss Pixies in Washington DC. Add in your grandmother’s fabulous antique chest for a coffee table (hard to believe you once referred to is as old “brown” furniture) and a natural fiber rug so your room has that layered, collected look.

Personally, I am thrilled the trend is moving towards an appreciation for a well curated space using unique items that are not all new and mass produced. Interior Designer, Nate Burkus, once said “Your home should tell the story of who you are, and be a collection of what you love.”

Hello Square Tiles

Thanks to Chip and Joanna Gains (and 90% off the local flippers) subway tile is officially overused and seen in just about every kitchen or bathroom completed since 2015. While timeless (after all, it is named after the 3×6 tiles installed in 1904 in the New York Subway Station) we are ready to explore other shapes and textures.

My personal favorite, square tiles, offer a more unique look but keep the space simple and sleek. From matte concrete tiles in mudrooms, to hand painted terracotta tiles for kitchen backsplashes, many manufacturers are using this traditional shaped tile with an artistic or creative twist. If square tiles still feel a bit out of your comfort zone, try playing with the scale of rectangular tiles such as sizes 2×9 or 3×12. 

Goodbye Gray Walls

Walk into just about any house on the market in the last five years and you will notice one similarity – gray walls. Many Realtors, Interior Designers (including myself) and Homeowners had their go-to list of grays that would cover entire house interiors top to bottom.

With a new decade ahead of us it is time for a new paint color trend (finally).  White paint brings a sense of sophistication to a space, allowing the walls to highlight artwork, architecture and give a bright yet quiet background to your beautifully collected furniture (see topic one above).

From bright white to milky white and crisp white to creamy white, there is a white for everyone. If you are considering going with a white wall, it is important to keep in mind your trim and cabinetry colors. All whites are not the same so be sure to use samples and see how they blend with your existing paint colors. 

Hello Color and Florals!

Tired of seeing the same styles over and over again? Us too. For example, one of the patterns I have been ready to retire since 2015 is Geometrics. Thankfully, with this 2020 concept of originality and pushing the envelope, we are seeing people much more willing to experiment with color and patterns such as florals.

From Peacock Blue velvet sofa’s to floral fabric covering barstools, furniture is being used to express clients style and favorite colors. For years, many folks associated floral fabric with that Chintz Living Room sofa never to be sat on at an elder family member’s house. Not anymore! We encourage and welcome the new wave of florals as they add incredible interest and naturally create wonderful color schemes in a room.

Thank you, Caroline! I’ve been seeing a lot of these trends pop up lately myself so it’s pretty clear that homeowners and buyer tastes are shifting back to an older generation of design, with a more 21st century touch. Caroline and her team at Madigan Schuler are excellent design resources so feel free to reach out to Caroline at caroline@madiganschuler.com for advice on your own interior redesign or remodeling efforts.

How To Know If A House Has “Good Bones”

elieliresidentialcom Buyer , , , 0 Comment
How To Know If A House Has “Good Bones”

Question: We’re looking for a house that needs to be completed remodeled, but want to make sure it has good bones. Do you have any tips on things to look for?

Answer: When I’m looking for a house with “good bones” I’m looking for a structurally sound house that offers a good canvass for updating to today’s standards. I’m cheating a bit this week and using a recent article written by Stephanie Dickens of BOWA, a local design-build firm that specializes in luxury renovations from kitchens to whole-home remodels. Below are some of the best tips from BOWA as well as some of my own:

Level Floors

A nice, level floor indicates good structural support. If you up look to where the ceiling and the wall meet, the corner crease should be fairly straight. If it looks wavy or dips down in the middle, the floor joists above are sagging and may need reinforcement.  You can also check for sagging or tilting by measuring the ceiling height at various points in the room. Some variation is normal, but it should not be off by more than 1” at any point.

Jump Around! (Jump Up, Jump Up, And Get Down!)

Now that you have House of Pain stuck in your head…Stand on your tiptoes then drop down hard on your heels. Do this at various points in the house to test the deflection in different areas. All wood framed floors are going to have some deflection, but you don’t want it to feel like your jumping on a trampoline. Too much bounce is an indicator of insufficient structural support.

Know Your Cracks

Sometimes structural issues reveal themselves in unexpected ways. Something as small as a crack in the drywall could be sign of larger structural issues. Straight, hairline cracks above openings or at joints, like the one pictured below to the left, are nothing to be alarmed about.  If you see jagged, diagonal cracks that are wider than 1/8”, like the one below to the right, the house may have settlement issues or insufficient framing.

Water Management

Water is a home’s worst enemy and poor water management can lead to water pooling against a home and getting into the cracks of the foundation, which can lead to structural deterioration over time. A musty smelling basement is a sign of poor water management. Look at where gutters drain – I often find that they’re dropping water right next to the house instead of sending it away. Look at the grading (slope of the yard) and if water is running towards the house, look for drainage systems. Sump pumps are nice, but they should be connected to a battery back-up in case power goes out.

Young At Heart

A house with newer core systems is not just a sign of good maintenance, but it’s a huge money-saver in renovations. Check on the age of the windows, roof, HVAC, water heater, plumbing, electrical, and main sewer/water lines. Any of these systems that are in the first half of their expected useful lifespan add tremendous value.

If you’re looking for a home with good bones that offers an efficient remodeling opportunity, feel free to reach out to me at Eli@EliResidential.com to schedule some time to me. Once you’ve found that home, or if you’d like to make updates to your current home, reach out to BOWA’s Caroline Goree at CarolineG@bowa.com if you’re looking for high-end design and remodeling services.