Answers (6)
- Armando Longueira, "Certificate of Use"
- Contributions:2
Hi
I am an approved HUD FHA 203K Consultant doing write up with cost estimates for rehabilitations and besides I am a professional engineer performing disclosure of findings report for required certificate of use in foreclosures in Miami Dade due to ordinance 08-133
Thanks
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- Sherri Sherpy, "MN Mortgage Mom"
- Contributions:477
Funkeykr,
Although FHA, in and of itself, allows the work to be completed by the homeowner, you most likely will not find a lender/investor who will allow it. It is considered another layer of risk and most lenders/investors will not take the added risk. To complete the work on your own, you need to be able to provide documentation that you are "qualified" to do it. It is just not worth the hassle, unless you are in the trade. I work with 3 lenders who offer the 203k program. Please call me if you have additional questions. 612-363-1106
- Stephen Ching, "Edmonds WA"
- Contributions:229
With that insurance in hand, lenders are more then happy to allow qualified contractors to work on their own homes. Invoices are normally approved and paid by the closing company from the escrow account and leftover money is applied to your principle.
- Clay Branch, "Georgia Loans"
- Contributions:8819
I agree with Andrew, contract it out
- Andrew Adams, "RenovationSpecialist"
- Contributions:9405
1st I would suggest that you not do the work yourself.
For what you would save it is simple not worth the aggrevation and unless you are in construction or can prove your ability to complete the work you are making the loan more difficult than it needs to be.
Your aquisition Costs are $178,000 give or take a little. Base Loan amount of $171,770 total loan amount of $174,775 payment of P&I of $1048. If you have a contractor do all the work the aquisition cost might go up another $4,000 (that would be a lot for $10,000 of work) $182,000. Base loan amount $175,630 total loan amount $178,700 for a payment of $1,071. Difference in payment $23.42!
How many hours will it take you to do that work? How much longer will it take you to complete the work and start renting the units out?
Many lenders and Brokers shy away from the product because it is more complicated than a regular loan, however it is a great program. The amount of work you are looking to complete would fall into the streamline product. If they are shying away then they arn't the right lender to work with.
What state are you in, I may be able to refer you to a good Reno lender in your area.
How does a FHA 203k loan work if you plan to do the work yourself??
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