A significant portion of my business focuses on the assistance with 203K, Homepath, and other construction loan programs. Typically, whenever I get a call about an estimate for one of these programs, it is later in the loan process and urgent to be completed without holding up the loan. This is one reason why I like to tell Owner's and/or their loan officers to get a contractor involved in the process as soon as possible. It helps to narrow down project scope decisions and provide more accurate estimates.
However, since buying real estate can have a number of hurdles to jump over, I realize the contractor may still be brought in later in the process. Fortunately, there are a couple ways to handle the urgent need to get an estimate with these programs. Typically, the need for the exact scope determination and itemized cost is not always necessary early on and can be modified slightly throughout the loan process. The important item to determine is the total cost budget. For example, with a 203K Streamline loan, the maximum rehab loan amount is usually $35,000. If the Owner is planning to take advantage of the full amount, we can help expedite the paperwork by providing a generalized scope and estimate/budget that totals their max. amount. Usually, an estimate like this can be provided with 24 hours. While the loan is being processed, the contractor can work closely with the Owner to determine the final scope of work and make sure the project will stay within budget.
Overall, this approach saves time, effort, and expedites the process. I have recommended this idea to many Owners and lenders and it has worked very well.
If you need any assistance with a 203K or other Construction Loan renovation in the Tampa Bay area, Hybrid Construction has the experience and is happy to help.
Brandon Leske
203K Loan Contractor
Hybrid Construction LLC
813-300-8019
bleske@hybridgc.com
www.hybridgc.com
Monday, November 11, 2013
Monday, November 4, 2013
FHA 203K and Other Rehab Loans
The FHA 203(k) loan programs have been around a very long time, over 30 years, but they have only become very popular in the last decade or so. This is most likely because many bank owned properties and foreclosures are in poor condition, do not meet FHA requirements, and require some renovations. Another reason the loan programs may not have been as popular in the past is many lender's did not handle these type of loans, but that has quickly changed in the past 10 years. More and more lenders are offering rehab loan programs and the process is becoming easier with each loan. Beyond the FHA 203(k), there are similar options available.
FHA 203(k) Renovation Loans
The FHA 203(k) program has 2 different options: Streamline or the Full loan. The streamline loan is an easier loan with less paperwork and approval timeline, but it does have a maximum for repairs capped at $35,000. This loan does not allow for major structural changes. The full loan process can be lengthy, require permits, and will use a 203(k) consultant/inspector. However, this loan option does allow for significant changes and much higher loan amount. I have experience in both types of loans, but so far, the Streamline loan has been significantly more popular.
HomePath Renovation Loans
The Homepath renovation loan is offered by Fannie Mae and very similar to the 203(k) streamline loan. The repairs are typically capped at $35,000 and structural changes are not allowed. This loan is only available for Fannie Mae owned properties.
Other Bank Renovation Loans
Most lenders offer other renovation loan options that may work better with your specific situation. One example is from Wells Fargo. They offer a Purchase and Renovate or Refinance and Renovate loan. It can be similar to a conventional mortgage with the rehab costs added in as part of overall mortgage.
I expect these loan programs will remain popular and good options for home buyers, especially in FL, because there will still be many properties requiring rehab/renovation in the near future. Please contact a lender for more specific information on your loan options.
If you would like more information or a lender referral, please contact me for more details.
Brandon Leske
Hybrid Construction LLC - 203(k) Loan Contractor
bleske@hybridgc.com
www.hybridgc.com
FHA 203(k) Renovation Loans
The FHA 203(k) program has 2 different options: Streamline or the Full loan. The streamline loan is an easier loan with less paperwork and approval timeline, but it does have a maximum for repairs capped at $35,000. This loan does not allow for major structural changes. The full loan process can be lengthy, require permits, and will use a 203(k) consultant/inspector. However, this loan option does allow for significant changes and much higher loan amount. I have experience in both types of loans, but so far, the Streamline loan has been significantly more popular.
HomePath Renovation Loans
The Homepath renovation loan is offered by Fannie Mae and very similar to the 203(k) streamline loan. The repairs are typically capped at $35,000 and structural changes are not allowed. This loan is only available for Fannie Mae owned properties.
Other Bank Renovation Loans
Most lenders offer other renovation loan options that may work better with your specific situation. One example is from Wells Fargo. They offer a Purchase and Renovate or Refinance and Renovate loan. It can be similar to a conventional mortgage with the rehab costs added in as part of overall mortgage.
I expect these loan programs will remain popular and good options for home buyers, especially in FL, because there will still be many properties requiring rehab/renovation in the near future. Please contact a lender for more specific information on your loan options.
If you would like more information or a lender referral, please contact me for more details.
Brandon Leske
Hybrid Construction LLC - 203(k) Loan Contractor
bleske@hybridgc.com
www.hybridgc.com
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