Mike's 203k Blog

What can I do when my appraisal came in too low? 1) You may be paying too much for the property - renegotiate the purchase price. 2) If it is less than 10% low you might consider switching to an FHA 203k loan, even a streamlined k, or "limited 203k" which it is about to be called will gain you up...

Renovation mortgages are simply new mortgage loans that include the renovation funds to make those needed repairs. It can be for a purchase or a refinance. The FannieMae HomeStyle® Renovation Mortgage is one of the most popular along with the FHA 203k loan program for doing this.  Why would you c...

Draw inspections for 203k loans have always made me wonder what is going through the minds of the contractors who ask for money when they know the work isn't completed. Here is a roof that I was told was complete and they wanted 100% of the draw amount. When he called for the draw inspection I as...

I really enjoy my work where we see homes coming back to life, quite often after many years of neglect. Looks okay from the first impression but there was no foundation under most of the home and a failed brick foundation under the remaining portion. Removing the brick foundation    No foundation...

I think this post by DeeDee is so important to seniors that I'm going to help get the word out for our CA clients so they can take advantage of these benefits.  Since February 2010 El Dorado County has been one of only nine counties that have a Proposition 90 ordinance but the Proposition 90 opti...

Our 203 inspectors are working with us to provide FREE Health and Safety Inspections for the overwhelmed city and county inspectors in Napa. It is important for that "peace of mind" that your home isn't going to fall in on you if you should return to your home.  Contact Debbie to REbuild Napa  De...

A forced air unit on a 203k I was working on was gutted. They took the blower, motor and circuit board. What can my client do? I'm afraid this is an insurance matter for the contractor. The contractor should have "work in progress" insurance to cover this. The home owner's policy might also cover...

Most projects will require one permit or another. This week we have had a couple comments from contractors as they attempt to put them into the line item bid form under "miscellaneous".   A couple were quite adamant about doing it that way and it isn't going to happen per the HUD Guideline. The g...

What is a 203k feasbility analysis report?A buyer is looking at a home that needs substantial work... how much will it cost to make those repairs? That is the big question. If it costs $50,000 then we have a deal, but if it costs $150,000 this isn't the property for this buyer. Solution: Have a c...

FHA SFH 203k handbook comments solicited by HUD are about to close and then will will considered for publishing the new handbook. Lots of outrage that HUD went to a 3rd party vendor to have them do research on something they knew nothing about only to come up with many of the same results that we...