Why It Exists
A traditional lender may see a damaged home and say "The property isn't currently eligible."
A renovation program may potentially say "We can finance an approved plan to make it eligible."
Possible Uses
Depending on current program requirements, rehabilitation may address qualifying repairs, modernization, systems, and structural or nonstructural improvements.
The Process
Generally involves more coordination than a normal mortgage: contractor documentation, work estimates, appraisal, approved scope, draw administration and inspections.
Do Not Promise Easy
203(k) can be powerful.
It can also require an experienced lender, experienced contractors and realistic timelines.
Seller Opportunity
A fixer that struggles with ordinary financing may have a larger buyer pool when renovation financing is considered.
Lisa's Role
Lisa can help evaluate purchase price, comparable renovated value, neighborhood, resale and negotiation.
The lender manages 203(k) qualification.
