Need a pool?
While the FHA 203K loan program is for renovation of existing properties in conjunction with the refinance or purchase, most of you may know that the restriction on luxury item repair is $1500. Is not a whole lot of new tools you could install for $1500 and to be sure you would try you cannot add a swimming pool with an FHA 203K.
So what we do when the only thing that's wrong with the house were trying to sell is that it has no swimming pool?
This would be a Homestyle loan offered by Fannie Mae via Prospect mortgage. Prospect Mortgage Company is not the only place you can get this but in my opinion it's one of the best places to get this loan product. They know how to close the Fannie Mae Homestyle loan as they are the largest lender of this product in the nation.
We had a project while back in in the El Dorado Hills area of California. The home had been foreclosed during the course of the construction of the pool. The swimming pool had not been finished and required another roughly $20,000 to complete. This is well beyond the ability of the FHA 203K. So we recommended a Fannie Mae Homestyle since this was the bulk of the work needed. Since Fannie Mae can ask the bill the pool from scratch this was a no-brainer in our opinion and a better fit than the FHA 203K loan from this client.