First Off,
I know I mentioned I was going to BLOG about the day to day process of the 203K Process, however I think to sum it up, I will just outline the rehab cost and specifications of repair, and end this blog with a testomonial of my client who we closed with last week.
Here is the specs of the loan. Home was Purchased for $299,700. Rehab cost was around $112,000 with a 10% contingency, however we were capped at a $406,250 loan amount in Denver County for FHA limits.
After all of the specifications of reapir were outlined and given to the appraiser, the appraiser appraised the home at $495,000 as the after improved value.
Not bad for a purchase to get $88,750 in equity right away!
I do agree, my buyer did get lucky, and the seller did turn down a cash buyer, however he got the property. My point here is, this is a great example of the 203K loan in action, however it is a case by case study, as far as the success stories go.
Below is the complete specifications of repair
|
Construction Item
|
Total Escrow
Col. 1
|
Total Cost of Rehabilitation
|
|
|
Previous Draw Totals
Col.. 2
|
%
|
Request for this Draw
Col. 3
|
%
|
Inspector/Lender
Adjusted Amounts
Col. 4
|
%
|
|
|
1.
|
Masonry
|
$300.00
|
|
|
|
|
|
|
1.
|
|
2.
|
Siding
|
None
|
|
|
|
|
|
|
2.
|
|
3.
|
Gutters/Downspouts
|
$295.00
|
|
|
|
|
|
|
3.
|
|
4.
|
Roofs
|
$1,100.00
|
|
|
|
|
|
|
4.
|
|
5.
|
Shutters
|
None
|
|
|
|
|
|
|
5.
|
|
6.
|
Exteriors
|
$886.00
|
|
|
|
|
|
|
6.
|
|
7.
|
Walks
|
$300.00
|
|
|
|
|
|
|
7.
|
|
8.
|
Driveways
|
None
|
|
|
|
|
|
|
8.
|
|
9.
|
Painting (Ext.)
|
$1,500.00
|
|
|
|
|
|
|
9.
|
|
10.
|
Caulking
|
None
|
|
|
|
|
|
|
10.
|
|
11.
|
Fencing
|
None
|
|
|
|
|
|
|
11.
|
|
12.
|
Grading
|
$7,294.00
|
|
|
|
|
|
|
12.
|
|
13.
|
Windows
|
$3,645.00
|
|
|
|
|
|
|
13.
|
|
14.
|
Weather strip
|
$47.00
|
|
|
|
|
|
|
14.
|
|
15.
|
Doors (Ext.)
|
$550.00
|
|
|
|
|
|
|
15.
|
|
16.
|
Doors (Int.)
|
$381.00
|
|
|
|
|
|
|
16.
|
|
17.
|
Partition Wall
|
$4,370.00
|
|
|
|
|
|
|
17.
|
|
18.
|
Plaster/Drywall
|
$4,557.00
|
|
|
|
|
|
|
18.
|
|
19.
|
Decorating
|
None
|
|
|
|
|
|
|
19.
|
|
20.
|
Wood Trim
|
$3,366.00
|
|
|
|
|
|
|
20.
|
|
21.
|
Stairs
|
$1,925.00
|
|
|
|
|
|
|
21.
|
|
22.
|
Closets
|
$240.00
|
|
|
|
|
|
|
22.
|
|
23.
|
Wood Floors
|
$9,800.00
|
|
|
|
|
|
|
23.
|
|
24.
|
Finished Floors
|
None
|
|
|
|
|
|
|
24.
|
|
25
|
Ceramic Tile
|
$2,335.00
|
|
|
|
|
|
|
25
|
|
26.
|
Bath Accessories
|
$256.00
|
|
|
|
|
|
|
26.
|
|
27.
|
Plumbing
|
$4,297.00
|
|
|
|
|
|
|
27.
|
|
28.
|
Electrical
|
$4,298.00
|
|
|
|
|
|
|
28.
|
|
29.
|
Heating
|
None
|
|
|
|
|
|
|
29.
|
|
30.
|
Insulation
|
None
|
|
|
|
|
|
|
30.
|
|
31.
|
Cabinetry
|
$8,518.00
|
|
|
|
|
|
|
31.
|
|
32.
|
Appliances
|
$6,000.00
|
|
|
|
|
|
|
32.
|
|
33.
|
Basements
|
$53,994.00
|
|
|
|
|
|
|
33.
|
|
34.
|
Cleanup
|
$1,108.00
|
|
|
|
|
|
|
34.
|
|
35.
|
Miscellaneous
|
$1,695.00
|
|
|
|
|
|
|
35.
|
|
36.
|
Totals
|
$122,248.00
|
|
|
|
|
|
|
36.
|
And finally, here is my client testomonial
My wife and I recently purchased a ‘fixer upper' in the Wash Park neighborhood. We did not have a large down payment and the home was in need of a vast amount of repairs and improvements. After reviewing our loan options, we came across an FHA product called a 203k loan. This loan rolls all construction costs into the final loan amount and requires only a 3.5% down payment. After interviewing three mortgage brokers I was most impressed by Brian's professionalism and easy going nature. He did not pressure me in any way and I never felt like I was getting a sales pitch. Due to his apparent brokering savvy and excellent prices, my wife and I chose Brian to help us secure the loan we needed.
Having purchased and refinanced another home, I thought I was prepared for the process ahead. However, the 203k loan procedure was longer and more tedious than any other loan I have ever applied for. Had it not been for Brian's support and guidance throughout the process, we would not have received the loan in time to support the Seller's challenging timeline. Brian always provided realistic schedules and lists of everything needed to execute the loan. He was honest and reliable and always easy to contact for any questions. With his help we were able to close just in time to meet the seller's needs and we now own the home of our dreams.
I highly recommend Brian Quigley for any of your loan needs. I know that I will certainly be bringing my business back to Brian for any of my future refinances or purchases.
Regards,
Ryan Rhodes
Please call or email me if you have any questions on the 203K LOAN
Thanks
Brian Quigley - loans@brianquigley.com
720-524-3215 -OFFICE
