Case study in renovation lending

A case study in renovation lending on a Jacksonville Florida home located at 13723 Alesbury Ct Jacksonville FL 32224 reveals people are not just fixing a home to minimal standards but modernizing a home and extending new life into established neighborhoods and creating an exciting alternative to buying a track built home. Here they have upgraded the showers and baths with modern fixtures and amenities you would see in a brand new model home. Stainless steel appliances, granite countertops, decorative glass backslashes, wood cabinets, new roof, new ceiling texture, AC and flooring have essentially give this tired home a brand new look.  Here they have used renovation lending to create a much more maintenance free home since everything on the home has been brought up to much better standards that you would expect in a home in this neighborhood and is not an over improvement.

Renovation lending allows you to not only rehab you home to minimal standards but also allows for preference work to personalize the house to conform to your needs. This interview with TCI construction shows their “Buy Smart program” where they specialize in home modernization instead of minimal repairs to meet mortgage backed security investor guidelines for FHA 203(k), Va Renovation or Homestyle renovation loans. Watch and see the improvements they have made illustrating what can be done in your home revitalization through renovation lending. See more on TCI on their website at

There are several options in repairs as well as loan choices. VA renovation, FHA 203(k) and Conventional lending types have a product for almost ever need in this space. The important part is speaking with someone familiar with these products as havinng a lender familiar with the process is key to a smooth process. We hope this information is helpful in realizing all of your renovation loan options. Please let my team know how we may be able to help show you and your family a better way home.

VA Renovation loan options

Wouldn’t you like to provide your veteran customers financing on virtually any home? Could you help more veterans if you could buy the property in the condition it was in and have repairs included in the financing and done after closing? Now you can do all of this with new programs offered for VA Renovation. VA Renovation loans are not common and very few people offer them. VA Renovation loans offer Veterans and surviving spouses the option to buy a home and include up to 35,000 in cosmetic repairs that may otherwise prevent a veteran from qualifying for a home because of the property conditions. This product allows veterans to buy a home and either use these funds for cosmetic challenges, appliances, roofs, Wood destroying Organisms, HVAC and other items that affect the homes livability and minimal property standards set by VA. Few lenders offer this product so there are plenty of misconceptions from lenders and realtor partners out there that would try to push a veteran away from this product or a home that needed repair because they do not know or haven’t heard this solution exists. Be more informed of options that would otherwise make distressed homes out of reach dfor our veterans. Find out more about imortgage, The John Adams Team and VA renovation loans today!

Renovation loans are not scary – More renovation loan options take the fear out of renovation lending

Nightmare on elm street renovation pictures

Nightmare on elm street renovation pictures

The above picture is of the classic movie home from “Nightmare on Elm Street”. Someone actually bought and renovated it – read about nightmare on elm street renovation.
We tend to help a lot of customers that have already met a “scary lender” who didn’t know the in and outs of renovation lending or simply didn’t have the expertise or products to back them up on execution. We have even saved a few deals from other “renovation experts” this year that just didn’t spend the time with the customer needed to alleviate the fear of the process up front and explain how the solution would work. Don’t get scared away from the renovation process. We have the time talent and resources to help you and your customers through the process.
We are enthused to work for the only company with the most comprehensive selection of renovation products that include both FHA 203k loans (streamline and full), both  Fannie Mae Homestyle Renovation and Freddie Mac Renovation loans, as well as the only present company offering a true VA renovation loan. We control our own contractor draw process and have special processing for these loans to help aid in faster closings and a better experience for all involved.  Most companies offer maybe two products and try to cram you into the product guidelines that fit their guidelines and not the customers needs. Sometimes it is with someone with little to no renovation process knowledge. It does not have to be a nightmare on Elm Street, Allow us to help!
Looking back on last year you know the Homepath loans have been put into the grave but don’t fear renovation like the night of the living dead. Homepath still offers incentives through their Ready Buyer programs and are perfect for other loan solutions. Read up on Ready buyer incentives and Homepath properties here.  FHA 203k and FNMA Home-style are still here and been around since the late 70s. Also there are now VA renovation loans. Freddie Mac loan options have also recently opened the door for almost any renovation loan you need with the right lender to help every situation.
You can use these various renovation loan products for distressed sales as well as refinance tools. The best thing is that it opens up the possibility of renovation to Primary occupants, Second home and Investor properties on virtually any home not just foreclosures. Buy any home as is and get the work done after closing! See our renovation checklists and other home-buyer tips and checklists here. 
We have a couple of examples below with pictures of recent home where there was preference work as well as quick closings on auction properties where we had to get the loan to close in as little as 13 days.  We’d like to do that every time but know it’s usually about 33 days for a renovation closing especially with new TRID guidelines.
  Please come back to the site often to see our projects. Renovation is far from dead and helping all kinds of folks get their dream homes ….. Don’t let your purchase or refinance be a Halloween horror night …. Call the John Adams Team for your next home loan and please forward our information to someone you know who could use our help!

Dont TRID on me! TRID checklist and changes. FHA 203k, Homestyle and VA Renovation lending experts

John Adams and Tu Mullins discuss the changes and impacts TRID is having on renovation lending the renovation lending form and how it affects you.

Don’t TRID on me. Hi I’m John Adams – and I’m Tu Mullins. Today’s renovation minute is about TRID. This is part of the truth in lending disclosure changes for simplification of the settlement process. These upfront disclosures provide a simplified way to assist consumers and to disclose up front the fees and the account for them in a similar way prior to and at closing. This is going to require lending professionals to capture more data upfront from all partners (Title, Insurance, and other affiliated costs for settlement providers). Here are some handy forms that will help you in the process for TRID and other helpful lender checklists for the loan process and a renovation loan checklist.

TRID has also caused some shakeup with the largest renovation national lender who is not prepared on a systems basis to deliver these products to consumers as of the TRID deadline. This is causing some lenders to pull out of renovation lending and have paused their offering of renovation loans for an undetermined amount of time. Non-bank lenders like imortgage have been nimble and able to respond to systems issues and consumer demand to still offer these products through the TRID transition. As always we are here for your resource with any renovation lending questions you may have.

More info at:

VA Renovation Loans for distressed and dated properties

Veterans can buy distressed real estate using their VA benefit. An exclusive product at imortgage for veterans today is available for VA renovation lending. Veterans can buy a home in almost any condition and deal with repairs after closing with this product. Many agents and customers alike have had the question: ”is there a 203k loan for veterans?”. The answer was no for so long but there is a lender participating in this VA program!

Jacksonville and other areas where we are in Florida have a lot of military bases. This includes active and retired veterans who have a VA benefit to use and want to participate in the distressed property market. This now allows veterans to buy homes that would otherwise be out of reach for VA financing. Similarly to FHA 203k and Fannie mae homestyle they can purchase and renovation the home inside of one purchase loan. Currently imortgage is the only lender participating in a VA renovation loan. This product will allow you to deal with cosmetic issues. Items like roof, AC, wood rot and termite damage that would otherwise prevent VA financing is possible with this product and allow the veteran to look at home to buy and renovate with built in equity. Please call us if you or someone you know could use out help in obtaining this solution.

Click here for more information on VA Renovation

How are fees different on Renovation Loans? FHA 203k, Homestyle and VA renovation loans discussed John Adams imortrgage

How are the fees different on renovation loans compared to regular loans? We want to tell you about the different fees associated with renovation loans. Most people’s first concern is usually with rate more than how fees are different than a regular loan. Use a step-by-step approach try to find out which loan program is most beneficial as it may vary from customer to customer and there are more solutions now than there have ever been.

FHA 203(k) is the popular buzz word in renovation but now there are a few renovation loan types you should know about. You’ll want to get a copy of the Maximum Minimum worksheet on any renovation loan to understand the administrative or supplemental origination fees as well as any consultant based cost that may not be disclosed on the initial or even the good faith estimate.

The biggest buzz in renovation lending right now is VA Renovation. VA Renovation lending is a very popular topic right now for veterans looking to buy and renovate a home inside of their VA purchase benefit and mortgage. There are no similar costs for supplemental and admin costs like other renovation loans, but if you do have some costs for permitting in the renovation process it must be disclosed in obtaining the loan not just lumped into the renovation amount like the other renovation products.

The Fannie Mae Conventional Homestyle loan is probably the most comprehensive renovation loan because you can help customers purchase or refinance and renovation primary, second home or investor occupancy property. You can also do must repairs that include luxury items different that the government based renovation solutions. Traditionally, most every lender charges supplemental or administrative fees on this loan product. Currently imortgage does not have these fees associated with Homestyle. This is an opportunity to shop around as some companies also have different requirements on this product for a third-party consultant to review the scope of work. This is a similar consultant used on an FHA 203 K as a consultant. imortgage requires a consultant only when projects exceed 50,000 or if the project has any structural work associated with the repairs. Most competitors have a policy to get a consultant if the project is over 15,000 . This can add another 400-600 dollars in additional expense with a competitor before you even discuss the rate and terms.

FHA 203 K probably the most well-known renovation loan by consumers and Realtors. FHA 203 K will be a one size fits all approach to primary resident purchase to include repairs. If you’re looking to renovate and you don’t have the best credit it may be a great option for you especially is you are geared for a low down payment solution. FHA 203k does have and supplemental origination fee calculated based on the amount of renovation you have. Based on your projects size and scope of work you may also have to high a HUD consultant. You will need a HUD consultant if your project amount is over thirty five thousand dollars, adding some square footage or structural repairs. You need to know the hud site for searching for a consultant ( Find a HUD Consultant ) as well as the Hud Consultant fee schedule:

The base fee is $400 for the repairs that range between $5,000 to $7,500. For amounts ranging between $7,501 to $15,000 the HUD 203k consultant fee is $500. For renovation work amount between $15,001 to $30,000, it’s $600. For the cost of rehab work that falls in the range of $30,001 to $50,000, the 203k consultant fee is $700. The fee will be $800 for fix-up work that falls between $50,001 to $75,000. If the proposed repair work costs between $75,001 to $100K, the fee would be $900. In those rare cases where the renovation work to be undertaken exceeds $100,000, the fee shall be $1,000. The above mentioned FHA 203k consultant fee amounts are meant for single family residential homes. For multi-family homes, the fee charged may be higher. Typically, it would be an additional $25 for each unit beyond the 1st one.

If you need help on making all these decisions as always the best thing to do is always pick up the phone and reach out to us. We have got all this information down very well. The biggest part of what we do is helping customers understand their options and making sure they have all the resources to make the best decisions.

Renovation Loans Let You Get All Your Projects Done Upfront

Renovation loans are a hot topic! Most borrowers try to figure out how to do as little renovation work in the loan as possible to meet minimal appraisal standards and keep the loan amount down. Some want to save some work for after closing for themselves to do but several renovation loan customers have buyers remorse in that they wish they would have done all of the projects they were thinking about up front so they could have started enjoying them right away or otherwise found later didn’t have the extra cash to do themselves. Use Homestyle, 203k or Va Renovation to build your dream home and to make that dream instantly a reality!

In the new renovation era, most customers are doing more and more preferential work than required repairs. Our advice is to try to get all of the work you are thinking about done up front in one simple transaction. In your bid process, write down all of your “wants” so you can comparison shop an apples-to-apples quote with your contractors.

On average, the consumer will spend between $5,000 and $8,000 in improvements and appliances within the first year of ownership, regardless of loan type. Why take more money out of pocket when you could use this in the entire project and keep more cash on hand and get a tax deduction from your mortgage?