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203K Refinance - Anyone specialize in these?

Hello,

I am  Looking at a 203K refinance option. But I don't know where to start. My house is approx valued at about 280k-300k. My mortgage balance is 298k. I would like to make an addition for approx. 70k and i believe after the work is done the property could be valued at about 430-450k.

Anybody know where I should go first? Lender, Contractor, Specialist(how do i find one)

Also how can I be sure my numbers are accurate and would work for this type of loan?

Thanks.

Fred G.
Miami, FL
  • January 15 2013 - US
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Answers (4)

Profile picture for Paul Welden
Fred - There is a great FAQ for the 203k at http:203kContractors.com which is also the Certified 203k Contractor Directory. On that site is also a database of some Preferred 203k Lenders, of which most of them that are listed are the National Directors of the Renovation Lending Division for their banks.

You should consider having a 203k Feasibility Analysis done for your property which will be a brief overview of any FHA required items that must be addressed and a 'rough estimate' of all the work you want done. This is performed by a 203k Consultant. Make certain you interview the 203k Consultants carefully before selecting one because they all do not the same/necessary experience and you want to work with one who you are comfortable with.

After Feasibility Analysis, interview the Preferred 203k Lenders and then Certified 203k Contractors to determine who will be a part of your '203k Team.'

Then apply for the loan with your selected lender; have the 203k Consultant do a Full 203k Work write-up followed by the Certified 203k Contractor's proposal. 

Submit these to the lender, who will then order the appraisal. Then the loan closes and renovations begin.
  • January 15 2013
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Profile picture for user02998826
Thanks Paul,

Where do I find these 203k consultants? Should all of these be local? Thanks.
  • January 15 2013
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Profile picture for Paul Welden
Fred, The 203kContractors.com site FAQ section has a link to the entire 203k consultant database. You can also call me tomorrow and I can help you with this.
  • January 15 2013
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Profile picture for user02998826
Ok. So after some research, it seems that the max I could get in this loan would be the current appraisal value plus the construction cost. It is the lesser of the future value, current plus construction costs, or mortgage plus construction costs. So how can I get a quality value for my home to see if the 203k would be possible? Also what is up with this FHA 1.2% Mortgage Insurance? This makes my monthly payment jump about $200.
  • January 17 2013
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