Here is a story of how the FHA 203k Renovation loan saved the day for a family in Texas. While searching online these borrowers came across information about the FHA 203k Renovation loan. They called me and explained their situation...they own a home and were in the middle of a renovation project when their contractor walked off of the job. Luckily all of the bills were paid and there was no lien again the home. Also he did complete the work he started so we were able to pick up where he left off.
After structuring this as an FHA 203k Renovation Refinance and securing all of the necessary documents we were able to not only give them a slightly better interest rate than what they previously had but also finance all of the work they wanted to do.
As a side note, had the home not been habitable or without a certificate of occupancy we still could have moved forward using the Fannie Mae HomeStyle Renovation Loan. Just think of it as the Conventional version of the FHA 203k loan which allows for a bit more flexibility depending on the state of the project.
Their work included a full remodel of the kitchen, common areas, bedrooms, expansion of the master bedroom, addition of a full carport and lots of great upgrades across the board. But before anything could start we had to level the foundation – luckily the full version of the FHA 203k allows for foundation work.
Within a matter of about a month we were able to pay off their current mortgage, through the refinance and escrow about $100,000 for a whole home remodel. What an amazing transformation for a great family!!
Here are a few details of the project:
Home was purchased for $180,000 in its current condition. Renovation total was $100,454
After improved value was $290,000 – based on scope of work and plans provided. They were left with about 7% equity which was a great ending however had the appraisal not been as good as it was the FHA 203k loan allows financing up to 110% of the after improved value so we would still have been able to move forward!
As you can see there are many, many possibilities with the FHA 203k Rehab loan. One question I get a lot is how am I to live in a house undergoing this much renovation. Guess what, you don’t have to! If the 203k Consultant deems the home uninhabitable during construction we can finance some of your mortgage payments!
From purchase to refinance we can help! Give us a call today! Repairs don’t scare us and they shouldn’t scare you either!