ATTENTION EVERYONE: 203k Remodeling Loans

rbsremodeling

Everyone

Bodger ask me about some information on Friday about 203k remodeling program

It is a FHA rehab loan program that I use to participate in about 6-8 years ago.



EVERYONE NEEDS TO LOOK INTO THIS

http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

Please ask any questions you may have and I will help. Anyone that has done this before please give your feed back.

It is not just for GC either some of the jobs go directly to my subs

Anyone with questions or needs an estimate can contact me and I will explain it to them.

__________________

Bodger

Thanks Rory! I got the info, I'm all over this. I'll keep everyone posted on the progress on my end.
I hope anyone else that gets involved in this shares their experiences.

Any port in a storm....

SCCTrim

Thanks for this information...and good luck with your upcoming estimates Rory

__________________
S.Colwell Construction
York County Remodeling
Adams County Remodeling

Mud Master

so, is this something for contractors to convince HO's to do? Something for a GC to sign up for and use? Or is it a program to assist in rehabbing?

I have no particular interest in it as I am all commercial, however I have a real good friend who is residential rehab/remodel and is slow on work at the time..and if it is something that could benefit him I would love to pass it along.

__________________

rbsremodeling

Yes and NO.

If you know some one who needs repairs or can't qualify for traditional lending this is an option for them

It is a program offered by FHA. It is simply a low cost remodeling loan. It is usually used when purchasing a home. The money is used to do repairs needed to make the home habitable.

It is not for high end renovations. It can also be used for a home that you already own and for Commercial repairs, (apartements, sfh rentals etc.

It will pay for a new roof, new kitchen, new bathroom, electrical upgrade or repairs , plumbing upgrade or repairs upgrade etc.

__________________

Mud Master

Thanks RBS!!

You made it very easy to understand, as I would have probably had to read the website 3x in understand what it was saying (I had a house fire Friday night, so I am just a lil' tired tonight from dealing with the insurance company and etc.)

But thanks very much.

__________________

rbsremodeling

Was it a major fire?? Please do not let the insurance company fawk you. I am dealing with one now for one of my wifey's friends. They really tried to screw her on the estimate.

__________________

HomerJ

Thanks for sharing the information. This looks very interesting given the number of foreclosed homes on the market here.

Where do you see most referrals coming from on this? Mortgage lenders? Real estate agents?

rbsremodeling

Real estate agents, advertise it on your site. Get the word out that you do 203k loans.

A lot of contractors don't do them. There is more paper work than usual and if your a hack you will not get your money.

They check the work and make sure it is done correctly. When I did them it was the same 3-4 contractors doing the work. Good guys that did good work.

__________________

Bodger

Mine came from a loan officer at a bank.

Jdove

I'm working on one now, up to $35,000 towards Home Improvements. I get my referrals trough loan officers and Real Estate Agents. The houses are usually quite a mess, but you can make good money if the customer gets approved.

FHA guidelines for Residential loans are strict, your credit doesn't have to be that good(580 min.) but you must go Full Documentation(Proving your income through W-2's or Tax Returns, showing proof of Assets, and Verification of Employment). My personal experience about 50% usually end up falling out.

Brock

Have one of these right now. Buyer asked for a grocery list of items for $35,000 cap. I wrote it up and Fidelity kicked it back out and told me I had to pull out some items and rewrite it for 33k. The bank wants that 2k for unforseen items that may come up. The customer has verbally accepted my estimate and I am currently awaiting a call back from the bank for a closing date. I'll answer any questions about my experiences (although limited to date) with it if interested.

P.S. Customer found me through a google search for remodeling contractors.

rbsremodeling

Typically the require a 20% contingency fund.

This of course can vary based on the work being done.

__________________

Brock

One other note.

The paperwork called for a bond but when I called the bank they said that they aren't going to require that. I think the bond on that would be around 3% or about 1k I've heard. I dont carry bond ins. and have never had a customer ask for it.

rbsremodeling

Never seen the Bond requirement before. What kind of bond?

__________________

Mud Master

Yes and no. My chimney caught fire. My g/f and I were downstairs and my one year old son was asleep upstairs, round 7pm. We heard banging at our door so I went to see who it was and it was my neighbor saying "you know your house is on fire?!" I was like "oh ****!!". so my g/f called the fire department, I got our son out of his crib and gave him to her, she took him down the street so he would not be out in the cold.

My neighbor started getting the on fire coals out of the fireplace and I took a look outside real quick. I live on the water and my chimney is on the water side (front of the house). The flames were shooting over the roof to the back of the house hitting my garage and our car/trucks. Once my family was out of the house I got the hose out from under the house and connected it to the other one I have on the other side and went up the the second story deck, which is ouside our bedroom & my neighbor threw the hose up to me. After some scurrying around I got the gun on it and started spraying, and LUCKILY by the time the FD got here I had it pretty much under control. Though I had to go to the hospital cause of the frostbite(RB, if you remember, Friday night was cold and windy in our area) I got cause in a hurry I did not screw the gun on tight and it was spraying out the connection and gave me a steady spray on my hands and down my shirt & pants into my shoes.

So after ALL that, I called my flu guy and he came out Saturday morning to clean it & install a new cap. Which was my fault I should have had it cleaned in the fall but I really didn't have the money & I always put cleaner in the fireplace and have never had a issue in 23 years. Though the kreosote build up is what caused it. I went up on the roof with him to look & tear out what was burnt. When I got up there & looked my shingles has begun to buckle and he said it was good that I continued to spray it because had I not it would have only been a matter of a couple minutes til' it got into my attic (tho the FD did find a couple hot spots in there but were miniscule), and than my house would have went.

However during the fire the flu had warped and now needs to be replaced. When I built my house I enclosed the chimney/flu with T-111 & Durock at the top by the cap. That now also has to be demolished so they can take out & reinstall the flu, which means I will need to rebuild it, along with some of the deck since I have both decks connected & cut very tight @ the chimney. Something I had planned to do the past two summers but never had the time(I may put something new on it, I just don't know what, however I am definetly putting the durock back at the top).

So I have to meet with the insurance company tommorow between 11am-2pm so they can investigate it and give the go head to have it re-done.

Sorry for the long post.

__________________

Al Taper

Hey Mud...
Sorry to hear about your fire. Glad to hear your all okay.And assume you can stay in your house? What a close call.

Bodger

Yeah Mud, close one. Good luck with the insurance and keep us posted.

Sounds like you having the cajones to turn the hose on it yourself probably saved a lot more damage from happening.

CA Contractor

Thanks RBS for the info - haven't had a chance to read thru it yet. So I'm assuming contractors must get approved by FHA first, is this a lengthy process? Also how are they with payments? We're small so can't carry too long.

SmithBuilt

Your a good man RB. Thanks for the info.

__________________
Tim