This home was originally built in the 1700s. The 203(k) loan Renovation was used to upgrade to current standards.
For some examples of other recent 203(k) loan renovations, please see my previous posts:
Details of Monthly Payments Added to the Loan Amount
While this property was under renovation, all of the monthly payments were financed in the loan amount. Therefore, no monthly payments were needed while the contractor completed the necessary and desired renovations on the property. Thus, the borrower did not need to make two payments (one for the current living arrangements and the other on the property). The payments were added to the loan amount for 6 months while completing the property. Then the borrower began making payments on their own, consistent with the loan terms.
Scope of Renovation
This was a very old property, with many issues to address ranging from deferred maintenance to upgrading to current standards. The total renovation made all of these renovations upgrades both possible and affordable.
The borrower wanted a home with character, personality, and charm, at an affordable price for his family. With some planning and thought, an acceptable solution was found. The outcome was more than acceptable.
The future value of this home far exceeded the acquisition cost of the property. The down payment was 3.5% of the acquisition cost.
The borrower was able to obtain the dream property he always wanted at an affordable price. The location easily supported the Renovation of this property. There was no deferred maintenance or additional upgrades needed after the completion of the renovation using the renovation loan.
What the Community Said About This 203(k) Loan
The town Mayor, among others, was thrilled with this home renovation. The renovation has garnered multiple awards. Turning an eyesore into a beautiful asset for the community is always highly regarded, especially when tax revenue is added to the local community and the tax revenue helps the community. Everyone was a winner with this renovation project. The town received more tax revenue, the renovation added employment to the local community, the tax base increased, and the borrower got the home they wanted at an affordable price.
Please call me to discuss any questions you may have in regard to your renovation project.