Are these potential for FHA 203k loan to renovate?
1) Barn sitting in the middle of a country property, that someone has converted to living area years ago, May or may not have permits, no other structures on the site. Maybe you know of one like this.
2) A warehouse downtown where home construction has grown closer and closer to the property until it is the only vacant property in the neighborhood. It is the only non-residential property left on the block, can we use the 203k to convert it to resdential use?
3) Mixed use building has been an eye-sore for years, maybe a fire trap, creating a nusance to the neighbors. Can we turn this around and get it sold under the FHA 203k loan program?
4) An older home built with no perimeter foundation. Can we put a foundation under it using the 203k?
5) A home in our neighborhood was involved in a fire that took it down to the foundation. Can I rebuild the home using a renovation loan?
6) There is an old home I pass everyday on the way to work that was mostly destroyed in a fire many years ago. It just sits there and no one has done anything with it for so long, If I got the listing could we list it as a "fixer".
7) I have this 8 unit building in my neighorhood that has been vacant for years and was gutted, all the copper wiring and plumbing has been removed long ago. It is just a shell now with exterior siding, no drywall, electric, or plumbing exists, Can we fix it up under one of these renovation products?
The original guideline as I read it would say it had to be a 1-4 unit building in order to qualify. In reality the guideline has has always been interpreted as it must be a 1-4 unit buidling upon completion of the project. That means the zoning must be approved for that change.
1) A barn? that may be stretching it a bit, but... lets do it. Yes provided it becomes a legal residential 1-4 unit building when complete. To be more specific, YES, this can be financed through the FHA 203k loan program.
2) If a warehouse we must have confirmation that residential, mixed use, or "live-work" would be approved. Upon getting that in writing from the city or county this would be a
3) Mixed use building vacant eye-sore for years... not a problem again. In fact there are about 25 of them sitting vacant in Stockton CA that would be a gold mine for anyone looking to revitalize the downtown in that, once bustling city. Why is this the best choice to fix these buildings up? Simply because it is an "owner occupied" product. The owner must live in one of the units. This type property is great for a young investor who has a business that he can use the commercial space or a portion of the commercial space to run their own business.
4) If a home has had a CO - Certificate of Occupancy, for more than a year it is a potential for a 203k. We have done a couple homes over the years that were built like a pole barn. In one case the home had six poles with creosote much like a telephone pole and then stringers were nailed across tying them together and creating the basis for the rest of the structure. I really hated to have to put a perimeter foundation as there was nothing wrong with the current foundation. We had a 104 year old home in Marin County CA with no perimeter foundation, it has one today.
5) All of the recent fires in CA and CO have left lots of devastation and from partially burned properties to fully destroyed properties. If there is a foundation to work from we can rebuild the home(s). If there is nothing left, call me, HUD may work with cities, counties, states, etc to allow them to be rebuilt under the program, they might not. If we don't ask, it will be a big NOT. But you may be surprised when they do allow it. We have actually done things outside the guideline where HUD came to us.
6) I see one of these in San Jose off Felter Road that would make a great renovation project. The burned out remains are sitting atop a hill with a potential panoramic hills and valley view. You see what appears to be 6" steel posts and some other structural steel that from the street appears is still in tact.
7) The eight unit building scenario is an actual deal we did in the 90's where we had 8 studios vacant leaving just the shell of a building, no plumbing, electrical, and no drywall. This was better than having to remove all that and paying for the demo. It has been vacant for so many years we had no problem getting the county, in this case, to give us permission that they would have no problem with using the existing zoning and allowing four three and four-bedroom flats. It turned out to be a "cash cow". The buyer got it for $2,500 so it was a matter of getting a renovation loan to do the work.
In case you haven't figured it out yet, all of these scenarios are potential 203k renovation properties.