All Forum Posts by: Diana Muresan

@Evan Lagerloef I have a client who is deconverting a SFR into a triplex with a 203k FHA loan. You can also do it on FannieMae HomeStyle as long as you can do it as owner occupied

@Grant H. best is too renovate it as a 4 units and stay on residential market. Can you do it as owner occupied? Then you can do a renovation loan either a 203k fha or FannieMae HomeStyle

@Kevin Scanlan Jr.agree, I am looking at MF myself for the last year in Little Italy and TriTaylor and I couldn’t find anything that makes sense. Yet almost half of my clients buy MF and they seem to have it working .... you could do a renovation loan on a MF and flip or rent after reno, less competition on the fixer ups as not beyond has the funds to repair and very few are aware they can do a 203k fha renovation on 2-4 units with with only 3.5% downpayment 

@Account Closed just get a property with what funds you have available, you can do FHA with 3.5% down or conventional with 3% down on owner occupied, you can start there and move towards investment properties. If you have some capital, you can do few flippers with renovation loans, 3.5% down on owner occupied and 15% down on investment

@Mike G. as far as qualifying for the loan is the same as any loan, do example, you find a house of $100k that needs $50k repairs, purchase price becomes $150k, if this is FHA downpayment is 3.5%, you have your GC to estimate the cost on a bid sheet, banks provide the bid sheet, it's just one sheet with itemized labor costs on one side and material costs in the other side. The appraiser will go out and appraise the forecasted value based on the bid sheet, even if the forecasts value comes in lower it's ok, you can go up to 110%. You can choose to roll in the mortgage payments up to 6 months in the loan if property is inhabitable. GC receives 50% of the material costs at closing and the in rest in 3-4 draws. You can refi or sell after the renovation. The pre-approval used to get on contract will be for the $150k

@Leonard Burks lender are not reluctant to take the 203k loans, most lenders don't have this program and most bankers are not certified to close them. I am one of the less of 1% of bankers that are 203k FHA and FannieMae HomeStyle certified, these loans require much more work and for 1 units we add an extra week for closing and 2 weeks for a multiunit. So you can close 1 unit in 5 weeks and a multiunit in 6 weeks. Seller should be relived you do a reno loan since these properties often won't meet the appraisal requirements so with the rehab loan, seller is relieved from repairing them.

You need to have a pre-approval before you start your house hunting and you need a good realtor. GC bid sheet comes later after you are on a contract. 

@Tyler Lance on  both owner occupied or investment, mortgage payments can be rolled into the loan during the renovation since property is inhabitable 

@Leonard Burks you can do the 203k easily with 3.5% down; roll all closing costs as seller concession, yiu can refi or sell after the reno to get rid of the mortgage ins, also you don’t need to make mortgage payments during the reno of the property is inhabitable. Mistake of the bankers are not certified reason why they steer clients away from this great program 

@Jose Gonzalez you can do a conventional renovation loan, either owner occupied with 3.5% down or investment with 15% down. You can sell it after reno, no pre penalty there. Stay away from hard money if you qualify for a conventional 

@Jesus Quebrado why not doing a conventional renovation loan instead?