One World Realty in Jacksonville Florida
Charles Gaulden

FHA 203k and Fannie Mae renovation loans

  • How do you know the amount of money to include for repairs in a FHA 203k or Fannie Mae conventional loan? For the sake of getting an initial loan approval we either make an educated guess on repair costs or submit a loan to qualify for the MAXIMUM loan amount. However, when the Scope of Repairs (SOR) if finalized we simply edit the loan to match and update all numbers for the buyer. They key is getting that initial credit approval without waiting on the Scope of Repairs to be finalized.
    • ex: $150,000 sales price + $20,000 repairs = $170,000 loan for approval.
    • Final SOR comes in at $17,000 we adjust the loan to $167,000 prior to final approval and closing.
  • What happens if we Fannie Mae accepts our offer using a Homepath Renovation loan but it turns out FHA 203k was a better loan choice for the buyer? Simple edit. We can amend the contract to indicate buyer is using a FHA 203k loan. As long as Fannie Mae knows you are using the correct type of loan to get the property closed (renovation) they will allow you to edit the contract. Ideally, we will pre-approve the buyers prior to the offer so the initial contract is correct from the start.
  • What are the differences with when Fannie Mae or Freddie Mac is the seller on a REO property? Since they are officially government-backed agencies, both Freddie and Fannie are exempt from paying Deed Stamp Taxes unless specifically addressed on the REO contract addendum. In addition, much like a typical REO property, the seller will not pay the settlement fee ($450-$850) or survey ($350). NOTE – If the contract is written correctly, Fannie Mae will often pay up to 6% of buyers closing costs/prepaids (on owner occupied) and Freddie Mac will pay up to 3% of buyer’s closing costs/prepaids. Each property/asset manager can dictate what the bank will pay on behalf of the buyer.

Ponte Vedra Real Estate – Jacksonville Real Estate – 203k Programs – Short Sale Homes and Foreclosures Homes in Oakleaf Plantation

Ponte Vedra Real Estate & Jacksonville Real Estate is prime areas for The FHA/ HUD 203K Program for Renovation.

Rehab Homes w/HUD‘s 203k is the a great way to Fix up Short Sale and Foreclosures Homes.. Let take a Look at what Type on Properties that is Eligible to participate in the FHA Program according HUD.

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.

To learn more about All FHA/HUD 203k Programs go to the Bottom link.

Now here is a Bounce For Buyers who are buying and Renovating.. One of the best Mortgage Company that is Offer this FHA/HUD 203k Program an the Loan Officer to Handle this type Loan Programs Click on the  link below 

Jacksonville Real Estate – 203k Programs – Short Sale Homes and Foreclosures Homes

Nearby Neighborhoods where you can Find Homes that are Short Sale Homes and Foreclosures Homes

 Dunns Creek Crossing, Dunns Creek Pointe, Cedar Bay, Lexington Park, Yellow Bluff Landing, Heron’s Walk, Tidewater, Amelia View, Watermill, Watermill Cornerstone Valencia, Hillcrest, Daybreak, Eagle harbor, Wynnfield Lakes, Benton Lakes, Jacksonville Real Estate, Real Estate Jacksonville, Oakleaf Plantation, Hamilton Glen, Eagle Landing, Forest Hammock at Oakleaf Plantation, Asbury Plantation (in Jacksonville Fl & In Orange Park, Fl


Jacksonville Real Estate – Jacksonville, FL Homes for Sale FHA 203k in Oakleaf Plantation, Hamilton Glen, Eagle Landing

Jacksonville Real Estate – Jacksonville, FL Homes for Sale FHA 203k Renovation

As I show Homes to Buyers I have to explain that some Jacksonville Real Estate  Carpet might be gone, Walls and Ceilings might have Larger Holes in them, Light Fixture might missing, Interior Door might be missing, Windows might need Replacing or Repair, All Cabinets and Counter-Top might Gone, Interior Wall and Ceilings might need Re-Painting.

Roof May need to be Replace alone with Paint the Exterior Wall and Trim.

Sometimes you may have a Electrical Panel Ripe out.. Not to mention the A/C Unit might completely Gone also.

FHA/ HUD has a Program Call The FHA 203K Program that is a Program for Renovation on Home that needs Upgrades to the Interior and the Exterior on the Home and to All the Major System including Structure Replacement and Repair. Also If you Want to Add a Room, Re-Design the Total Truss and Roofing System.

With All of the Foreclosure Homes come to The Market Jacksonville Real Estate will be Prime for these type on Program. So, went you Purchase a Jacksonville Home For Sale being Foreclosure Home or Short Sale Home .

The Streamline 203k and the Full 203K for Structure Renovation to the Homes.

Jacksonville Real Estate – Jacksonville, FL Homes for Sale FHA 203k in Oakleaf Plantation, Hamilton Glen, Eagle Landing

Short sales in Jacksonville fl, and Ponte Vedra Beach Real Estate

Short sales in Jacksonville fl and Ponte Vedra Beach Real Estate Allots of

Buyers ask me all the time when we are Making An Offer to Purchase .

How long do it take to get Short Sale Approval from the Sellers Lender?


Short Sale in Jacksonville, Fl is Taking anywhere form 45 to 60 Days to get Done.  Bare in mind that some Short Sales already have there BPO’s Done on the Property which in this case 45 days may be enough time to get all the Title work done by the Title Company that is handling the Closing.


Now if the BPO is not done it may take all on those 60 days to get the Title Work Done by the Title Company.


Once the Realtors get the Short Sales Approval from the Lender He/She forward it to the Buyers Lender the Buyers Lender Updates All of the Buyers Finance Information Bank Statements, VOE’s, Credit Reports. Etc..


During this time the Buyers Lender is also Ordering the Appraisal, Home Inspection, and WDO Inspection.


The Appraisal may take about 5 to 10 day to Complete. The WDO Inspection may already has been Done at this Point. Everything go to the Underwriting Department. Now if there is No Conditions to Clear on the Appraisal it may stay in the Underwriting Department for an 1 week and then the Buyers File must be Audited that may take 3 Days. If everything is Find then the Closing day can be Set.. Good Luck.




This Advise Is Good For Short Sales Homes, Foreclosure Homes and New Homes it Don’t Matter It’s a Closing.