Comments on: Renovation Loans :: What is a 203k Loan? http://www.buildingmoxie.com/2012/03/renovation-loans-what-is-a-203k/ Fri, 17 May 2013 19:32:04 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: jb http://www.buildingmoxie.com/2012/03/renovation-loans-what-is-a-203k/#comment-27298 jb Fri, 23 Mar 2012 14:57:57 +0000 http://www.buildingmoxie.com/?p=15568#comment-27298 Hi Nicole. so glad to get input here from someone that has been through the process. Word to folks that are thinking about tackling a majority of the work themselves! Thanks for stopping by and dropping this note. Valuable information. Cheers and a happy Friday. ~jb Hi Nicole. so glad to get input here from someone that has been through the process. Word to folks that are thinking about tackling a majority of the work themselves! Thanks for stopping by and dropping this note. Valuable information. Cheers and a happy Friday. ~jb

]]> By: Nicole http://www.buildingmoxie.com/2012/03/renovation-loans-what-is-a-203k/#comment-27296 Nicole Fri, 23 Mar 2012 14:37:00 +0000 http://www.buildingmoxie.com/?p=15568#comment-27296 Good info! I actually went through the 203k process when I purchased my home, so I have a couple opinions to add: 1) The extra time and paperwork required make this a huge pain to deal with, though I believe it can be worth it. 2) I believe it's only worth it if you do it through a general contractor. We used the loan for a bunch of handyman type items, and essentially played GC ourselves. Because of this, we had to submit each individual bid, and file for each payment for each subcontractor separately. And the subs got very impatient because of the lag time between paperwork submission and payment. My understanding now is that if we had used one general contractor, then we'd only have had to submit their bid and their payment requests, and they in turn could then pay their subs. For us, since we played our own GC and only did about $8k worth of work, it wasn't worth all the hassle. Good info! I actually went through the 203k process when I purchased my home, so I have a couple opinions to add: 1) The extra time and paperwork required make this a huge pain to deal with, though I believe it can be worth it. 2) I believe it’s only worth it if you do it through a general contractor. We used the loan for a bunch of handyman type items, and essentially played GC ourselves. Because of this, we had to submit each individual bid, and file for each payment for each subcontractor separately. And the subs got very impatient because of the lag time between paperwork submission and payment. My understanding now is that if we had used one general contractor, then we’d only have had to submit their bid and their payment requests, and they in turn could then pay their subs. For us, since we played our own GC and only did about $8k worth of work, it wasn’t worth all the hassle.

]]> By: jb http://www.buildingmoxie.com/2012/03/renovation-loans-what-is-a-203k/#comment-27212 jb Thu, 22 Mar 2012 13:46:02 +0000 http://www.buildingmoxie.com/?p=15568#comment-27212 Paul thank you for the additional clarification here. It really seems like such a complex topic, but an important option for those that are considering a fix'er-upper. cheers and thank you again. ~jb Paul thank you for the additional clarification here. It really seems like such a complex topic, but an important option for those that are considering a fix’er-upper. cheers and thank you again. ~jb

]]> By: Paul Lesieur http://www.buildingmoxie.com/2012/03/renovation-loans-what-is-a-203k/#comment-27210 Paul Lesieur Thu, 22 Mar 2012 13:35:44 +0000 http://www.buildingmoxie.com/?p=15568#comment-27210 Great article, On the feasibility, this is a HUD consultant offering, it is an inspection that primarily addresses the minimum requirements for getting the 203k loan. Its a cost analysis that provides average material and labor costs for bringing am home up to minimum standards according to HUD. The property may also require local code compliance repairs. A lender can suggest and verify a 203k consultant but the homeowner is free to hire any consultant they want. The consultant will bring a certification letter on the first visit (well I do anyway)! A feasibility report is $200 from me and you can take my numbers and decide if the purchase is worth it to you. No consultant is required for a streamline 203k, up to 35K in repairs. The exception is if you do any structural work, then you will need a consultant. On luxury items such as swimming pools, you can't install a swimming pool but you can repair one ie; new heater, new edging, pool cover, fence around pool ect. Much of the offering is open to interpretation by the lender or consultant so ask a lot of questions when considering a 203K. Great article,
On the feasibility, this is a HUD consultant offering, it is an inspection that primarily addresses the minimum requirements for getting the 203k loan. Its a cost analysis that provides average material and labor costs for bringing am home up to minimum standards according to HUD. The property may also require local code compliance repairs.

A lender can suggest and verify a 203k consultant but the homeowner is free to hire any consultant they want. The consultant will bring a certification letter on the first visit (well I do anyway)!

A feasibility report is $200 from me and you can take my numbers and decide if the purchase is worth it to you.

No consultant is required for a streamline 203k, up to 35K in repairs. The exception is if you do any structural work, then you will need a consultant.

On luxury items such as swimming pools, you can’t install a swimming pool but you can repair one ie; new heater, new edging, pool cover, fence around pool ect.

Much of the offering is open to interpretation by the lender or consultant so ask a lot of questions when considering a 203K.

]]>