Financing in 20176>Question Details

Iris Burkart,  in Potomac Falls, VA

Can I finish a basement with a 203k loan??

Asked by Iris Burkart, Potomac Falls, VA Tue Nov 13, 2012

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Yes, a 203k loan can complete the basement with no problem. There is both a Streamline option, if that is all you are doing, or if you need more extensive renovation, a Consultant K would be the answer.

I have been closing 203k loans for 20 years, and I know exactly how to help you.

Please call at your earliest conveinece 540-882-4176.
Cedric Johnson
Prospect Mortgage
203k Specialist
VA Continuing Education Instructor
2 votes Thank Flag Link Tue Nov 13, 2012
Cedric is one of those lenders I was referring to. He teaches this subject manner for the Dulles Area Association of Realtors, where I serve as a Director of the association. Cedric does a good job educating our members on these loans.
Flag Tue Nov 13, 2012
You can use an 203K renovation loan (refinance or purchase) for a home renovation project, which could include a basement renovation.

The Streamline version of the loan covers renovations of up to $35,000 for common small remodeling projects like kitchens, baths, appliances, flooring, paint, etc.

If a project includes "structural modifications", then a full 203K loan is normally used. The amount could be small or large depending on the scope of work.

The renovation project has a two stage appraisal: an AS-IS appraisal based on current condition/configuration, and an AS-Improved appraisal based on the future condition/configuration of the home.

If you are renovating the basement to include a rental apartment the lender can include the future rental income into your debt to income ratio calculation. This may help you qualify you for the renovation project.

These types of loans can be used remodel a condo, single family home (detached or town home), up to a 4 unit apartment complex (where you live in one unit), or you can renovate a living space over commercial space in a downtown property you own or acquire.

I have helped clients buy homes with 203K renovation loans including suburban town homes and rural horse properties. Each project has it's own unique dynamics, and you need to exercise good project and contract control and time management to avoid a lot of stress..

I have worked with several lenders who do very good jopb with 203K renovation loans whom I could recommend.

Regards,

Alan Kroll - Broker/Owner of RE/MAX North Star in South Riding, VA - Alan.Kroll@remax.net
Web Reference: http://SearchNorthStar.com
1 vote Thank Flag Link Tue Nov 13, 2012
From my experience with 203k loans, the best advice is to use a lender that offers assistance via third party with 203k processing.
This shortens the closing time by weeks. Try http://www.cfs-mortgage.com/203k for more information.
0 votes Thank Flag Link Sat May 25, 2013
Hey Iris- Yes, you can. We work with an excellent lender that specializes in 203k loans and he can give you all the info you need to know. Shoot me an email or give me a buzz and I can give the info to you. Best of luck with your client. Let them know the 203k will take longer to close too, you will need to make sure your settlement date is at least 45 days out.
0 votes Thank Flag Link Tue Nov 13, 2012
As long as the amount is $5000 for the repairs you can.

Actually, there is a simple steamline 203k that's easier.

We do them and we're happy to help. 267-514-4630 x1

U S Loans Mortgage LLC
Web Reference: http://usloans.com
0 votes Thank Flag Link Tue Nov 13, 2012
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