203k is alive and well from Clearlake Oaks to Charlotte

Clearlake Oaks is a hot bed for the FHA 203k Loan Program and yet still underutilized in that area. When I drive through the town we see lots of very small homes right on the main drag... I'm talking homes that can't be 400 SF which is TOO SMALL to get FHA financing UNLESS you increase the size. That means the home could be perfect in every other way and you merely add on to it to get it to the minimum 650 SF FHA needs to make the loan.

I live in Charlotte NC and we have lots of little bungalows that would otherwise be forgotten if we don't add on to them getting them up to the required minimum living area. I was in Kannapolis the other day and there were about twenty of them right on Dale Earnhardt Jr. Blvd. all in a row. Half of them had "for sale" signs up.

My CA clients reading this shouldn't panic as we also have a home in CA where we spend most of our time of late. We have lots of teammates and associates that cover us when we are out of town so please keep the orders coming. We'll get them done for you.

In any case we should know that this is possible, take it as your 203k basic training. You need to accumulate tools that you know inside and out as when the need arises they will come to the surface and be at your fingertips. This blog is intended to give you the benefits of our knowledge and expertise of 16 years and thousands of 203k projects. Feel free to ask questions as they come up even if they don't pertain to a specific blog post. If they don't we'll create a new blog post for you.

It is a 203k if any of the following exist... not all but ANY

1) Home needs TLC - might be a Streamlined k

2) Home needs major renovation - Full 203k

3) Renovations needed that exceed $35,000 - NO PROBLEM for the Full 203k

4) Non structural repairs needed under $34,200... ($35,000) is a Streamlined k... it has to include the contingency if required and any other costs and fees so think of it more like $30-32,000 NOT $35,000 if you want to be correct most of the time.

5) Swimming pool needs repairs in excess of $10,000 - this is a FannieMae HomeStyle loan as both 203k loans are limited to $1,500 in repairs for luxury items.

6) The home is perfect but too small for an FHA 203b loan - it is a FULL 203k as it will need an addition that is considered structural.

7) Septic tank has failed - it is a FULL 203k

8) Well and septic tank are too close together - FULL 203k

9) Kitchen remodel is desired - Either a Streamlined k or Full 203k

10) Bathroom need updating - Either a Streamlined k or Full 203k

11) I have a foundation but the house was 90% burned to the ground - it is a FULL 203k

12) I have a great little home but it is 100+ years old and the foundation is bad - it is a FULL 203k

13) I bought a home and I knew it needed work and I ran out of money to fix it up.. it can be either a streamlined k or a FULL 203k. If refinanced within 6 months of the original purchase the money you or your client put down originally can be used as money in this transaction... we may be able to get the money for them with no more money out of their pocket.

Until next time... M