One World Realty in Jacksonville Florida
Charles Gaulden
904-859-1778904-859-1778

FHA 203k and Fannie Mae Renovation loans

  • When is the appraisal ordered on a FHA 203k and Fannie Mae Renovation loans? We do not order the appraisal until the detailed Scope of Work is completed and signed by the buyer and the contractor. The appraisal is performed Subject-To the After-Improved value. On FHA 203k you get up to 110% of the After-Improved value which means a 10% buffer. All repairs are done AFTER CLOSING.
  • What happens if the utilities CANNOT be turned on with a property because of leaks, extended vacancy, etc? With the renovation loan we would include the cost of any necessary repairs AND we will always keep at least 15% contingency money in the case there are additional repairs needed. Example – Cost of work = $10,000. Contingency would be at least $1,500. For homes that have been vacant for least 12 months – JEA will require an electrical inspection and city inspection prior to activating the power or water.
  • How is the down payment calculated on a FHA 203k loan? The minimum 3.5% down payment is calculated off the sales price of the house plus the cost of rehabilitation or repairs. Example: $100,000 sales price + $15,000 repairs = $115,000 x 3.5% = $4,025. A buyer can certainly choose to have a larger down payment but these are the minimums.
  • Are Renovation loans – FHA 203k and Fannie Mae Homestlyes – good for Refinances too? Yes. You can Refinance & Renovate which means not only lowering your interest rate, but also including the cost of improvements as well. 3 great advantages:
  • Appraisal is based on After-Improved Value
  • FHA 203k – you get up to 110% of the after-Improved Value.
  • Closing costs can be financed into the loan
  • On FHA 203k and Fannie Mae Renovation loans can the buyers act as their own contractor? While the guidelines on some versions of the loans allow for “Self Help”, both HUD and Fannie Mae discourage the practice because of the level of risk. The guidelines call for the buyers to be licensed/insured contractors AND there are NO upfront monies provided for materials. So, the buyers must prove the ability to perform the job in workmanlike manner AND have sufficient funds for both the loan and repairs. There are other guidelines that restrict the amount of work that can be done in a “Self Help” transaction.

FHA 203k Loan Renovations Project

  • On a HUD REO property, what does it mean when HUD allows an Escrow Holdback?
    HUD foreclosures generally are not financable As-Is. The HUD appraisal/property condition report will note the major items to be addressed and a very rough estimate of the costs. When HUD allows for an escrow holdback it simply means they will allow the buyer to escrow his/her OWN funds to address the necessary repairs in order to meet FHA minimum property standards. However, the majority of the time there are additional items to address after inspections AND the buyers are better off using either a FHA 203k or Fannie Mae renovation loan to address the property conditions. HUD properties are best addressed on a case-by-case basis to ensure the best solutions are being used.
  • On FHA 203k loans are there different qualifying standards than a typical FHA Loan? No! credit qualifying is the same for any FHA loan with REMN. The only big qualifying difference is the Loan Amount as the buyer must qualify for a higher loan amount with a FHA 203k loan because of the additional repair/improvement monies.
  • What is the maximum amount of work that can be done with a HomePath Renovation loan? There is a $35,000 maximum for cost of renovation on a HomePath Renovation loan. However, both FHA 203k and Fannie Mae Standard renovation loans do NOT have a hard Maximum Repair Amount.
  • If a buyer wants to use a VA loan but the home has WDO damage etc. is there any way to avoid a renovation loan? Yes! REMN offers the HomeFixer Program on ALL loans – including VA. If there are minor repairs items that no do NOT affect the health and safety of the property, the buyer can escrow up to $5,000 of their own funds to address the repairs within 14 days of closing. CLICK HERE for HomeFixer Details.
  • If a buyer wants to use a conventional loan and put 20% down, what happens if the home needs a new roof (ex) in order to obtain financing? We simply treat the transaction as Fannie Mae renovation loan but the buyer can choose to put additional money down. Ex – House is $200,000 but needs a new roof. Buyer gets an estimate for $10,000 for new roof. $210,000 x 20%  = $42,000. The buyer can always pay more down and not finance the repairs, but the Renovation Loan/Appraisal allows the transaction to close despite of the property condition.

FHA 203k & Conventional Renovation

  • With FHA 203k or conventional renovation, if a WDO inspection indicates a house has Live Termites does the seller/bank have to treat the house before closing? NO. As long as the treatment is listed on the Scope of Repairs it will be done AFTER CLOSING like everything on a FHA 203k or Conventional renovation loan.
  • If a home is partially rehabbed but still needs wall, plumbing, electrical etc., can that be finished with a FHA 203k or Conventional renovation loan? YES. As long as the home was existing and was originally issued a certificate of occupancy (1 year for FHA) you can complete the work in your loan. However, on Conventional Renovation loans you CAN complete a new home that was never finished or issued a certificate of occupancy (or add a pool).
  • Can someone purchase and renovate a 4-unit property with an FHA 203k loan? YES. You can do up to 4 units as long as you live in one of the units as your primary home. NOTE – The buyer can use projected rental income from the other 3 units to help qualify for the loan.  
  • What is the minimum credit score for a Fannie Mae HomePath or HomePath Renovation loan?
  • HomePath -LTV greater than 80% –  660 and auto approve in desktop underwriting (DU); LTV less than 80% determined by DU but generally 620.
  • HomePath Renovation – LTV greater than 80% –  660 and auto approve in desktop underwriting (DU); LTV less than 80% determined by DU but generally 620.

For Sale 203K Renovation Projects in Jacksonville, Florida

We're sorry, but we couldn't find MLS # 657181 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

 

Green Cove Spring, Fl- Homes For Sale – Florida Homes – Homes For Sale

We're sorry, but we couldn't find MLS # 685725 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

 

This Beautiful Log Cabin Home For Sale in GREEN COVE SPR , FLORIDA  32043

 

Homes For Sale – Use The Wells Fargo Downpayment Assistance Neighborhood Lift Program & FHA 203k Renovation Loan for Upgrades

We're sorry, but we couldn't find MLS # 611200 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

This a great Home To use the FHA/HUD 203k Renovation Program and the Wells Fargo Neighborhood Lift Program

Call Me Today  For a Showing (904) 348-0452

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For Sale For Sale For Sale Home – Buy a Home In Jacksonville Fl – FHA 203k Short Sale Home

For Sale For Sale For Sale Home – Buy a Home In Jacksonville Fl – FHA 203k  Short Sale Home

Looking to Buy A Home that Need a Little TLC.. 10365 Shelby Creek North JACKSONVILLE  FLORIDA 32221 For Only.

This Home is a Great Candidate For FHA/HUD 203k Renovation Program.

Upgrade the Kitchen with New Cabinets and Counter Top. New Tile Floor in The Kitchen and, All New Appliances.

New Shingle Roof, Exterior Painting and Interior Wall Painting.

$ 84,900 on The Westside on Jacksonville Fl  .. Renovation Special

 

Call Me Today for a Showing …(904) 348-0452

www.Livinginjacksonvilleflorida.com

 

We're sorry, but we couldn't find MLS # 617459 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

How To use the FHA 203k Streamline and Full Program Can be use Accessibilty Improvement For Persons with Disabilities in Jacksonville fl

How To use the FHA 203k Streamline and Full Program Can be use Accessibilty Improvement For Persons with Disabilites in there  AS Is Home Purchase weather it a Short Sale Home or Foreclosure Home. And You don’t Have to be a Veteran… Here are things the  FHA/HUD 203k Products Can do:

  • Interior Door Enlargements
  • Modify Kitchen Cabinets
  • Bathroom Modification
  • Flooring
  • Modify Outlets and Light Switches High.
  • Driveways, Sideways and Ramp Installations and Much More…..

Call Me Today So I Can HelpYou Find a Home Veterans an Non Veterans Disabilities…(904) 348-0452

www.RealtyHomeCenter.com

www.LivinginJacksonvilleFlorida.com

Complete Home Realty. Inc

Jacksonville Fl Homes For Sale, Homes For Sale In Jacksonville, Florida Home

We're sorry, but we couldn't find MLS # 623755 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

FHA 203k Renovation on Short Sales Homes in Jacksonville Fl

This is a Great Buy on a Short Sale Home in Southside of  Jacksonville, Fl 3 Bedroom 2 Bathroom For $108,900.

This Home is a Great Candidate For FHA/HUD 203k Renovation Program.

Upgrade the Kitchen with New Cabinets and Counter Top. New Tile Floor in The Kitchen and, All New Appliances.

New Shingle Roof, Exterior Painting and Interior Wall Painting.

Call Me Today …. About This Home and, The FHA 203K Programs  904-348-0452

FHA 203k Renovation on Short Sales Homes in Jacksonville Fl

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www.LivinginJacksonvilleflorida.com

Complete Home Realty, Inc

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When Can I Buy a Home Again With A FHA or VA Mortgage Home Loan After My Jacksonville Fl Short Sale Homes

Purchase a Home After Short Sale in Jacksonville, Florida

How long will you have to wait on buying a home after a short sale on your previous house? It depends on the loan type and other factors, with ranges between 0-days and 7-years.

Fannie Mae : 2 years (Conventional Loan) w/ a max 80% LTV

Fannie Mae (w/ a max of 90% LTV): 4 years

Fannie Mae (Conventional Loan) (w/ max LTV): 7 years

FHA: 3 years from completion date (You can again if short sale is sold with no mortgage delinquencies)

VA: 2 years from Trust Deed date  (You can Purchase immediately  if the short sale is sold with NO mortgage delinquencies)

USDA Rural: 3 years from completion date

When Can I Buy a Home Again Will A FHA or VA Mortgage Home Loan After My Short Sale

When Can I Buy a Home Again With A FHA or VA Mortgage Home Loan After My Jacksonville Fl Short Sale Homes

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