Great question. If you are looking to make improvements, especially with a 203k, do not believe the horror stories! I am an EcoBrokerÂ®, a certified green real estate agent, and I focus on homes and properties that are in dire need of rehabilitation, and specifically green or energy efficient renovations. My experience is that yes, most lenders and agents tell horror stories because they have no clue what they are doing - especially in terms of being green. What you need is an EcoBroker and a Mortgage Broker who understand the importance of rehabilitating and restoring value to homes, and who make these types of transactions their main focus.
It is all in the mind - if people think it is difficult to do a 203k, it will be a nightmare. Likewise, if you work with an EcoBroker such as myself, the process is actually quite exciting and inspiring. From walking through an energy audit, to selecting the most cost effective improvements to make, to watching the contractors install green upgrades. From moving in and living a more comfortable healthy economically and environmentally friendly lifestyle, to receiving local, state, and federal tax credits or deductions and rebates - being green in real estate is the best way to go.
Indeed, there are a few more requirements than a normal loan - the energy audit, and having all bids for work into the lender before closing, etc - however as I mentioned, there are people who are just dying to help a eco-conscious buyer to use an FHA 203k loan, or any other type of financing, to make the home efficient and sustainable.
Feel free to contact me by phone, text, email, or through Trulia for more information on making the renovation process efficient and simple! Good luck!
RealtorÂ® and EcoBrokerÂ®
Metro Premiere Properties
26 W Dry Creek Cir Ste 200
Littleton, CO 80120