FHA 203K Rehab Loan - YouTube

hey everybody have you ever been looking for a home and you've just been looking

and looking and you finally find one that you love. You love the neighborhoods,

you love the house, but the tile in the bathroom is wrong or maybe the kitchen

countertops just aren't what you want So today we're going to talk about how to

get those renovations financed and we're starting right now. Hi I'm Kathy Williams

with Homevest Realty in Orlando Florida and if you're interested in all things

Orlando and real estate please consider subscribing to my channel so you don't

miss out on any upcoming videos that I have. Today I'm here with Kinsey with All

In Construction. So what are we going to talk about today Kinsey?

We're gonna talk about how you can roll your renovation costs into your mortgage

so while you're out there searching for the perfect home in the perfect spot

with the beautiful kitchen or bath that you're dreamed of consider these loans

while looking around. Perfect,and what are these loans? Tell me more about the

loans. So the most popular is an FHA 203k loan is an FHA product it's a renovation

loan. So you're basically you're going to borrow the purchase amount for the home

plus the cost of the renovations rolled into one mortgage. So it's not a

secondary mortgage it's all one mortgage. And then you'll close on the home. After

closing we'll use those additional funds that you borrowed to pay for the

renovation. I love this idea and so many people don't realize that this is a

possibility! They passed by house after house that could be great options

because they think, "Well I have the money my for my downpayment. I have the money

for my closing costs, but I don't have the money for my renovations. So this is

a great solution. Most people don't think about putting money aside for a

renovation. They know how much they can afford for a house and they think that

perfect house is out there but right now inventory is low and you may find a

neighborhood that you really want to live in or a school district you love

but that perfect house just needs some fine-tuning. So that's what we're going

to talk about today. At all in construction we specialize in doing the

construction for these specialty loans. That's great thank you!

So we're gonna talk a little bit more but we're gonna take you to another room

to discuss the next step. So Kenzie how would my clients choose a knowledgeable

and reputable general contractor? Definitely check reviews online, make

sure they have their license. I always say call us at All-In Construction we'd

be happy to help you and if we can't we'll point you in the right direction

but you want to make sure especially for a renovation loan that the contractor

has experience working on these loans. Legally any contractor can work on the

loan as long as they're licensed, but that's not always the best scenario for

you. So what happens is, it can slow down the process you are basically waiting

for the general contractor to get you a detailed estimate that you need to

provide to your lender. You're waiting for them to write up

this detailed estimate the way underwriting wants to see things written

up so a lot of times there can be a lot of back-and-forth and what is this doing

it's slowing down your closing time. You know people don't want a long

closing time. They want to hurry up and get into their new home so it's very

important that you do some background and you know that the general

contractor understands these loans. I know for myself I always have lots of

great people that I refer. Different businesses that I work with in the

community like contractors, plumbers, electricians, just different people that

I work with all the time. So definitely get with your Realtor and ask them for

maybe a few names of companies that they could recommend to you to give you some

quotes and estimates. And also just make sure that they do know about the 203k

loan because it is really important that they understand the importance of

timeliness of deadlines and things like that with the 203k loan. Yep

renovation loans are awesome and they provide a lot of opportunity to build

equity back into your home . But you know, there is a process involved, and I always

say you want the dream team. You want the agent that understands the demands you

want the contractor that understands the demand and that way you can customize

your new home. I think that's great so for example somebody finds

awesome home and everything is great about it all it needs is countertops in

the kitchen. Would that be something that a contractor would do would that be

something that would be worth? Yeah technically you can do small projects in

a renovation loan. You always have to just weigh out the pros and cons. If you

have the cash available it's always better obviously to use cash funds than

to pay interest on something like a two or three thousand dollar renovation but

if you're a first-time homebuyer and all your cash is tied up, but that is a

deal-breaker for you, the renovation loan or a 203k could be a problem-solver so

really don't rule out anything until you kind of run the numbers and talk to your

lender. Yeah and what I'm seeing more out there it's not just a countertop

it's a countertop, it's cabinets, it's flooring, perhaps paint on the

interior. Maybe an air conditioner has gone out or it's on its last leg and you

know it's going out. With that yes you've got a few there odds and ends things

they're not one big kitchen remodel but it's it's you know all those things

could add up to well over $10,000 you know would that be a great option? Yeah

absolutely so a lot of times you'll find a home that needs a maintenance repair.

So it needs a new roof.It needs new HVAC or it may have water damage, mold or the

seller is just not willing to do any repairs. You may not be able to get a

normal loan. You have to go over FHA 203k. So what you can do then is if you

have to do those repairs to you might as well do some cosmetic updates along the

way. Maybe you would like to put in some laminate floors or you know just update

the paint so a lot of a lot of our clients bundle those things together, the

maintenance issues and the cosmetic updates. Okay so there's two different

types there's the 203 K which is FHA and the home style which is conventional? Yes.

Okay, so there's a there's a lot of options

here. You know if you think a home is just perfect "except". You know don't feel

put off by that. In this market right now homes are selling really quickly

and if you see one that fits your needs except there's just that one thing, don't

let it hold your you back. Ask your agent about the 203k loan. Ask your lender. Find

some quality contractors that can help you, a general contractor especially, who

can give you the whole product at once for the 203 K product. That's important

right there's one contractor involved. Yeah you can have more contractors. Let's

say you were to put in a pool. Maybe you hired all in construction to do your

kitchen and bath, flooring, roofing. We actually don't do pools, so your lender

would allow another contractor to be part of the transaction. So

there's definitely a lot of scenarios and believe me everybody is willing to

help everybody that understands these products and including myself are

willing to answer questions for you. If you go on our web site, allinconstruction.com

we explain the whole process on there. We even have some

contacts on there that you can reach out to. Or you can follow us on Facebook and

Instagram. Perfect! Yes I love it! Well thank you Kinsey I really appreciate you

helping us with information about this I think it's gonna help my viewers so much

to be able to learn about ways that they can buy homes that maybe aren't quite

exactly what they were hoping for but they can make it their own special home.

Just let me know in the comments below if you have any questions about

home renovation options in the area. What homes look like that need some twerked

some tweaks and twerk yeah you have questions about home renovation please

don't hesitate to put a comment below. We'll help you out we'll answer any

questions thank you so much for joining us and we'll see you soon. Hey everybody

Kathy Williams here with Homevest Realty and that's not what I meant to

say okay that will be wrapped into your loan purchase and you don't have to come

out of pocket found the right home and there's a cat

in here jingling Bell okay here we go again

hey everybody Kathy Williams here with Homevest Realty Oh No we can't have the

kitty cat meowing