All Forum Posts by: Paul Welden

@Alex Ng

Most likely, income verification will be based on your tax return documents. 

 Great! 

However, HUD/FHA guidelines require your mortgage lender to select the 203k Consultant.

Also, 203k Consultants are not allowed to recommend contractors or be project managers or anything else other than performing their duties as a 203k Consultant. 

Just fyi. 

Hope this helps! 

@Devan Wilson

The nearest local lender to Oklahoma City with a physical office that has done a 203k in the past year is based out of Lawton, OK.

This means that you will most likely be relying on larger national lenders for your 203k loan. 

Local vs national .... it doesn't really matter because everything is done online anyways. 

And there were only 12 FHA 203k loans done last fiscal year in Oklahoma City. So, not many lenders doing them in your area, but that's not a problem because there were 4.034 FHA 203k's done last fiscal year nationwide.

If you want some help connecting with some of the largest 203k lenders, let me know. 

And remember to use a contractor who knows & understands the 203k and has strong financials to afford the start-up costs and ongoing expenses associated with 203k rehab projects. There are contractors with the accreditation as a Certified 203k Contractor. 

Hope this helps!

@Christopher Wingo

The FHA 203k, Fannie Mae Homestyle, and Freddie Mac CHOICERenovation are all renovation loans based on ARV.

Hope this helps! 

Without the 203k Consultant's SOR/WWU, the contractor will not know what FHA will require to be included in their estimate.

So, while any contractor can give you a price, unless the contractor knows what FHA will require to be included, there is a very high probability that the contractor's price estimate will be grossly inaccurate.

Hope this helps! 

@Kieran Dowling

Possibly. 

The FHA 203k allows the purchase of Mixed Use Residential as long as the the residential section is at least 51% of the entire space. You can use the 203k loan to buy the entire building but the renovation money can only be used on the residential section.

What is the current zoning .... commercial, Mixed used commercial, mixed use residential?

Could possibly get a zoning change if that's needed. 

What does the lender think is the highest/best use of the property? 

Hope this helps. 

@Gabriel Alvarado

For this type of 203k renovation, you need to have a 203k Consultant come out to the property and complete an SOR/WWU. This report will include all FHA MPR's and a cost estimate. Your mortgage lender is required to select them for you.

Hope this helps!

@Jason Papp

Consider using contractors with the accreditation as a Certified 203k Contractor.

They appear to have completed a 203k education course and had their credentials and financials verified.

So, they must be better prepared than you average contractor who knows nothing about the unique 203k processes, paperwork, guidelines, rules, timelines, forms, payment structure, etc.

You're only as strong as your weakest link ... select your partners wisely.

Hope this helps!