Home Buying in Charleston>Question Details

Greg Northrup, Home Buyer in Charleston, SC

Does anyone have experience with renovation mortgages? I've found a home that I estimate will need 40k in it to make it great.

Asked by Greg Northrup, Charleston, SC Tue Aug 7, 2012

What are my options here? I don't think i want a FHA 203k loan because it looks like a nightmare. I could do 10% or more if required on purchase price reno costs. Should I expect much higher rates? Does this kind of conventional loan exist?

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Answers

8
Hey Greg,

I would be happy to answer any of your FHA 203k questions. Please feel free to give me a call at 670-5512 when you are ready to get started. I look forward to hearing from you.

Thanks
Matt
1 vote Thank Flag Link Wed Aug 8, 2012
R3 Residential Repairs and Renovations is a contractor that specializes in renovation loans. We have bank connections, real estate agent connections, home inspector connections and we are the contractor that will do all the work. We have a turnkey program and will guide you through the whole process. Check us out at http://www.R3Charleston.com or call us at 843-952-3036
0 votes Thank Flag Link Tue Jan 28, 2014
Call Teresa Byrnes. She is wonderful. Then call me. :)

Mortgage Renovations Specialist
NMLSR ID 457874

Wells Fargo Home Mortgage | 805 Bacons Bridge Rd | Summerville, SC 29485
MAC D3629-010
Tel (843) 847-1322 | Fax (866) 967-3084

Teresa.L.Byrnes@wellsfargo.com

http://www.wfhm.com/teresa-byrnes1
0 votes Thank Flag Link Thu Aug 23, 2012
We got one a few years back from First Federal that went well. This was a construction loan where we got 2 drafts for the rehab. The number drafts would depend on the need for funds to complete each stage. Each draft required $600 for their project inspection, so keep the drafts to a minimum if you go with this option.
0 votes Thank Flag Link Wed Aug 22, 2012
Getting a renovation loan can be very tricky, make sure you work with someone that can help you navigate the ropes. I recommend calling:

Matthew Mieras, xco
Sr. Loan Officer
Ark-La-Tex Financial Services, LLC
858 Lowcountry Blvd, Ste 102
Mt. Pleasant, SC 29464
843-670-5512 (cell)
843-216-8997 (office)
Matt.Mieras@Benchmark.US
http://mattmieras.benchmark.us


He can help you out with a 203K loan...

Below is some good info on the 203K program:
_______________________________________________


FHA 203k Quick Highlights: For Streamline 203K and Standard 203k Renovation Loans



• 640 minimum credit score requirement
• 3.5% down payment requirement based on the purchase price plus renovation cost
• Home has to be a primary residence
• Buyer can close on the purchase of the home prior to clearing the CL100 or repair requests noted by an FHA appraiser
• Buyer cannot complete the repair work unless they are licensed in the area of work being completed
• Minimum repair cost is $5000
• Streamline 203K repair cost cannot exceed $35,000
• Any major structural or foundation work can only be done through the standard 203k renovation loan
• Streamline eligible repairs include HVAC, roof, electrical, paint, floors, appliances, room remodels, CL100 clearance, etc.
• Contractor performing the renovations must be licensed and carry active general liability insurance
• Contractor and buyer cannot be related
• 50% of the repair cost for the Streamline 203k is released at closing



What type of Improvements can be financed into a 203K Streamline Renovation Loan?

Repair work less then $35,000
Replacement of roofs, gutters and downspouts
Replacement or upgrade of existing heating, ventilation and air conditioning systems
Replacement of plumbing or electrical systems
Replacement of flooring
Exterior and interior painting
Remodeling that does not involve structural repairs, such as kitchens
Weatherization, including storm windows and doors, insulation and weather stripping
Purchase and installation of appliances, including free-standing ranges, refrigerators, washers and dryers, dishwashers and microwaves
Improvements for accessibility for persons with disabilities
Replacement of windows, doors and exterior wall re-siding


What type of Improvements can be financed into a standard 203K Renovation Loan?


Kitchen remodel and bathroom remodel
Add-ons: bedrooms, bathrooms, family room, living room, garage
Landscaping: new fencing, walkways, irrigation & sprinklers, and driveway
Replacement of windows, doors and exterior wall re-siding
Lead-based paint stabilization or abatement of lead-based paint hazards
Major/minor repair or replacement of roofs, gutters and downspouts
Major/minor repair, replacement or upgrade of existing heating, ventilation and air conditioning systems
Major/minor repair or replacement of plumbing or electrical systems
Major/minor repair or replacement of flooring
Exterior and interior painting
Remodeling that includes major structural repairs, such as kitchens
Weatherization, including storm windows and doors, insulation and weather stripping
Purchase and installation of appliances, including free-standing ranges, refrigerators, washers and dryers, dishwashers and microwaves
Improvements for accessibility for persons with disabilities


Shawn Pillion
843/ 647-9711 Direct
888/ 433-4125 Fax
http://www.ChuckTownHomes.com
_____________________________
0 votes Thank Flag Link Wed Aug 8, 2012
The 203k streamline program is not to bad. This would allow repairs up to 35k less a 10% reserve if all utilities could not be turned on. A lot of the time buyers over estimate the cost of repairs on a property and this could be the way to go for you. You need a loan officer that is familiar with the 203k process and a contractor that has done 203k jobs before.
0 votes Thank Flag Link Wed Aug 8, 2012
I am closing on one of those types of loans today. The buyre is using Wells Fargo, I can give you all their information. Please call me or email and I would gladly help.

Debbie Knowles
843-609-8998
Brand Name Realty
debbie@debbieknowlesrealty.com
0 votes Thank Flag Link Wed Aug 8, 2012
What I would suggest is a construction and/or renovation loan. Call Lorcan Lucey with Lucey Mortgage in Mt. Pleasant. He seems to have a great package right now. His office # is 843-884-8133. Good luck and let me know if you have any other questions. Have a great night and don't stay up too late watching the Olympics!! Joyce
0 votes Thank Flag Link Tue Aug 7, 2012
Could this be rolled into one loan? What I'm looking for is one loan with reno and purchase rolled together.
Flag Tue Aug 7, 2012
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