Posted on: 09th Nov, 2011 03:52 am
i am looking to purchase a homepath property to occupy as a principal residence. the property is in poor shape, and it is eligible for a homepath renovation loan. however, we estimate that it will take more than $35000 to bring the house to code. the property is in georgia.
i have two questions:
1. because it is a fnma property, my agent tells me that it is exceedingly difficult to deal with fnma and probably won't get much cooperation from them in the rehab process if i get a 203k loan. has anyone ever used a 203k to acquire and rehab a fnma property, and how difficult was it to deal with them?
2. would it be possible to acquire the property with a homepath loan so that i would control it, and then immediately refinance that loan with a 203k standard mortgage to rehab it? perhaps a simultaneous closing scenario, or a refinance within 1-2 months of the homepath closing?
i have two questions:
1. because it is a fnma property, my agent tells me that it is exceedingly difficult to deal with fnma and probably won't get much cooperation from them in the rehab process if i get a 203k loan. has anyone ever used a 203k to acquire and rehab a fnma property, and how difficult was it to deal with them?
2. would it be possible to acquire the property with a homepath loan so that i would control it, and then immediately refinance that loan with a 203k standard mortgage to rehab it? perhaps a simultaneous closing scenario, or a refinance within 1-2 months of the homepath closing?
Hi derrick,
Though I don't have a personal experience working with them, I will still suggest you to contact FNMA and negotiate with them so that they help you rehab the property. If you can properly convince them, then they will allow you to do so.
I don't think you will be able to refinance a loan immediately. You will have to wait for 6-8 months in order to refinance the loan after you have taken it.
Thanks
Though I don't have a personal experience working with them, I will still suggest you to contact FNMA and negotiate with them so that they help you rehab the property. If you can properly convince them, then they will allow you to do so.
I don't think you will be able to refinance a loan immediately. You will have to wait for 6-8 months in order to refinance the loan after you have taken it.
Thanks
The limits are the limits. So if the true cost to improve the property exceeds the limits, then you would not be eligible. As the costs needs to be allocated prior to funding your loan. All costs to complete work need to be in bid form and submitted to the lender. Your best bet is to purchase another property, or make less repairs to the home.
