Financing in 20011>Question Details

Kizito Ssens…, Other/Just Looking in 20011

Can I get a 203k loan on my existing DC home? I've had the home for 2.5 years.

Asked by Kizito Ssensalo, 20011 Wed Oct 6, 2010

If so, how much can I get? My home is values at $495,000 according to DC tax records and looking at comps, it seems that this about right. I brought the house 2,5 years ago for the same price, so not including any of the upgrades, I don't appear to have any equity, but perhaps more importantly, I have lost value. Does anyone know any good lenders in DC that can help?

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Yes you can re-finance and get improvements done. It all depends on if you have any equity or not. If you have none then regardless of what the tax assessment is, what matter is the appraisal. If you do, then you have the options of doing a streamline which is $35,000 or less in repairs or a full blown which is over $35,000.


Damon J. Brockenberry (Damon The Agent)

Washington DC Real Estate Services

Servicing Washington, DC, Maryland, & Virginia

cell: 240-694-6460 e-mail: sold@damontheagent.com
0 votes Thank Flag Link Wed Oct 6, 2010
Kizito,

I am a Realtor and not a lender, but I believe you may qualify if your credit and income check out. I do recommend talking to a lender but here is applicable information from HUD's website, I do not see anything that would disqualify you, do you?

"Eligible Property
To be eligible, the property must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to the provisions of local zoning requirements. All newly constructed units must be attached to the existing dwelling. Cooperative units are not eligible.

Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place.

In addition to typical home rehabilitation projects, this program can be used to convert a one-family dwelling to a two-, three-, or four-family dwelling. An existing multi-unit dwelling could be decreased to a one- to four-family unit.

An existing house (or modular unit) on another site can be moved onto the mortgaged property; however, release of loan proceeds for the existing structure on the non-mortgaged property is not allowed until the new foundation has been properly inspected and the dwelling has been properly placed and secured to the new foundation.

A 203(k) mortgage may be originated on a "mixed use" residential property provided: (1) The property has no greater than 25 percent (for a one story building); 33 percent (for a three story building); and 49 percent (for a two story building) of its floor area used for commercial (storefront) purposes; (2) the commercial use will not affect the health and safety of the occupants of the residential property; and (3) the rehabilitation funds will only be used for the residential functions of the dwelling and areas used to access the residential part of the property.
"



Here is a link to HUD's website and the 203k loan page: http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm
Web Reference: http://www.craigfauver.com
0 votes Thank Flag Link Wed Oct 6, 2010
Kizito,

We lend in DC and have the FHA 203K program. Other ones as well. I suggest contacting me to discuss further in detail. This isn't a yes or no question, I need some more information. One question is are you in an FHA loan now? I just can't say yes or no at this point.

Thanks,
0 votes Thank Flag Link Wed Oct 6, 2010
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