FHA 203K & Fannie Mae Conventional Renovation Loan

By
Real Estate Agent with Duval Realty of Jax SL3242787

Can you use a FHA 203k loan or a Fannie Mae conventional renovation loan on a multi-unit property? YES! You can renovate 1-4 unit properties with both FHA 203k and conventional renovation loans. The renovation loans also allow you to convert a SFR to a multi-unit and a multi-unit back to a SFR as long as county zoning allows for it. NOTE – When a buyer is purchasing a multi-unit property as a primary home, potential rental income from the additional units is allowed to help toward qualifying the buyer.

  • What is the maximum amount of work allowed on a Fannie Mae HomePath Renovation loan? The total max cost of renovation (including inspections, title updates, etc) is $35,000. However, Fannie Mae’s main renovation loan – Homestyles Loan – does NOT have a cap on the amount of repairs which is another reason we tend to see it more often. FHA 203k loans also do not cap the amount of repairs except for meeting county loan limits ($304,750) and of course appraisal/qualifying limits for the transaction.
  • Do you need a Clear WDO inspection to close on a FHA 203k or Conventional Renovation loan? NO! As long as the scope of repairs (estimates) from the contractor is addressing the WDO damage then we are fine to close it guarantees the work will be done after closing. NOTE – You can even close on a home with live termites as long as pest treatment is included on the scope of repairs to be done after closing.

Comments (19)

Adrineh Betcheri

Charles,

Thank you for sharing, this was great information! I am new to this blog as well and I am enjoying the platform. I look forward to your next post.

Enjoy your day and welcome to AR.

Aug 30, 2015 03:56 AM
Chris Mamone
Keller Mortgage - Tacoma, WA
Senior Loan Officer

 Charles Gaulden - Great Post! I've steered clear of FHA 203k for now with many clients due to extremely long close times and the complicated process of dealing with consultants and people doing the work. It can be very frustrating for both the buyer and the seller. See you in the rain!

Aug 30, 2015 05:26 AM
Mery Fernandez Empire Network Realty Luxury Brokerage
Empire Network Realty INC. - Orlando, FL
The Rise of An Empire, Let's Build Yours!

Welcome to the world of Activerain, may your blogging  create a whole new chapter in your Real Estate Career.

Aug 30, 2015 09:38 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

Welcome to ActiveRain. Information on FHA 203K loans are definitely useful to those who wish to purchase homes that need work.

Aug 30, 2015 08:39 PM
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

Good morning Charles and welcome to Active Rain! Congratulations on your first blog post!

Aug 30, 2015 08:53 PM
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Charles Gaulden good information to share about financing renovations for 1 to 4 family homes....I'm gald to see you're a Rainmaker....posts like yours will be found by the bots and indexed by Google.... good job....

Aug 30, 2015 09:27 PM
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

and welcome to ActiveRain.... I hope you enjoy participating on this platform as much as I have over the past 6 years....it's a great place to learn, share, market and network....enjoy and blog away.

Aug 30, 2015 09:28 PM
Captain Wayne - Rowlett Real Estate School
Rowlett Real Estate School - Panama City, FL
Rowlett Real Estate School / Owner and Instructor

I agree with Chris above, it is a hassle. But for some, it works out well. Great list!

Aug 31, 2015 08:04 AM
Captain Wayne - Rowlett Real Estate School
Rowlett Real Estate School - Panama City, FL
Rowlett Real Estate School / Owner and Instructor

Welcome to ActiveRain. It's great to have you aboard. I look forward to reading more of your posts.

Aug 31, 2015 08:04 AM
Wenceslao Cortes
Charles Rutenberg Realty - Hudson, FL

Welcome to Active Rain, Very informative and important information.

Aug 31, 2015 11:11 AM
Mery Fernandez Empire Network Realty Luxury Brokerage
Empire Network Realty INC. - Orlando, FL
The Rise of An Empire, Let's Build Yours!

Welcome to the world of Activerain, may your blogging  create a whole new chapter in your Real Estate Career.

Aug 31, 2015 02:43 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Important information Charles, thanks for sharing!

Welcome to Active Rain, looking forward to reading many more of your posts, let me know if there is anything that I can do to help as you get started here.
Bob

Aug 31, 2015 04:08 PM
Olympus Executive Realty Inc.
Olympus Executive Realty INC. - Orlando, FL
Home Of The Top Producers

Welcome to AR, Congrats on your first blog, look forward to all your future blog post. Its a great place to share your Real Estate thoughts and experiences. 

Sep 01, 2015 02:34 PM
Charles H. Gaulden
Duval Realty of Jax - Jacksonville, FL

Thanks go out to All my New ActiveRain Friends

Sep 03, 2015 11:37 AM
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Sep 09, 2015 11:51 AM
#15
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Charles - Good information about 203K and renovation loans for those who need them.

Sep 10, 2015 04:24 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Charles - Welcome to the ActiveRain community, and congrats on your first post here.

Sep 10, 2015 04:24 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Please know that the ambassadors, those with orange badges, are here to help and answer questions.

Sep 10, 2015 04:25 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Charles Gaulden Welcome to Active Rain!  As someone who has been here (on and off) for close to 9 years, it's well worth it!

Sep 26, 2015 12:36 AM