Historic Hillsboro Renovation
Historic RENOVATION WITH A 203k LOAN
Example of a 203k Loan on a Historic Property
This home was originally built in the 1700’s and the Renovation was used to upgrade to current standards.
Details of Monthly Payments Added to the Loan Amount
While this property was under renovation, all of the monthly payments were financed in the loan amount. Therefore, no monthly payments were needed while the contractor completed the necessary and desired renovations on the subject property. Thus, the borrower did not need to make two payments (one for the current living arrangements and the other on the subject property). The payments were added to the loan amount for a period of 6 months, while completing the property, then the borrower began making payments on their own, consistent with the loan terms.
Scope of Renovation
This was a very old property, with many issues to address ranging from deferred maintenance to upgrading to current standards. The total renovation made all of these renovations upgrades both possible and affordable.
The Borrower
A home with character, personality, and charm, at an affordable price was wanted by the borrower for is family. With some planning and thought, an acceptable solution was found, and the outcome was more than acceptable.
Appraisal
The future Value of this home far exceeded the Acquisition cost of the property. The down payment was 3.5% of the Acquisition cost.
Final Outcome
The borrower was able to obtain the dream property always wanted at an affordable price. The location easily supported the Renovation of this property. There was no deferred maintenance or additional upgrades needed after the completion of the renovation using the renovation loan.
What the Community said
This home renovation received multiple awards when completed, including adulation from the Mayor of the town, who was thrilled with the outcome. Turning an eyesore into a beautiful asset for the community is always highly regarded, especially when tax revenue is added to the local community and the tax revenue helps the community. All were winners with this renovation project. The town received more tax revenue, the renovation added employment to the local community, the tax base increased, and the borrower got the home they wanted at an affordable price.
Butcher Shop/Grocery Store on Capital Hill now a Duplex
COMPLETE GUT REHAB OF A FORMER GROCERY STORE/BUTCHER SHOP TO A MULTI-UNIT BUILDING WITH A 203K LOAN
Example of a 203k Refinance and Renovate Loan
This Multi-family home on Capitol Hill was purchased previously and renovated using the FHA 203k loan. A complete gut rehab was performed on the second unit of this property. This was a former grocery store/butcher shop that was renovated into a charming multi-family 2 unit dwelling.
Details of Monthly Payments
The first unit was livable, while the property was under construction; therefore there was no reason to finance the monthly payments while this property was under renovation.
Living Conditions
The 2nd unit of the subject property is a Carriage House and was not occupied during construction. Therefore, while under construction the owners were able to live in the primary residence and keep their costs down, and did not need to finance the payments in the mortgage amount. All renovation was completed on schedule, and within budget. The construction budget represented the majority of the final loan amount.
Multi-Unit Renovations
HUD will allow comparative rents be used to help qualify for the mortgage payments on Multi-Family dwellings. However, reserve requirements need to be met to comply with HUD guidelines.
Closing Costs
All of the closing costs were financed into the final loan amount of this refinance, because of the equity position of the current financing.
Appraisal
The future value appraisal FAR exceeded the Acquisition cost of the property. The borrowers obtained the property of their dreams with substantial saving to monthly payments and bringing $0.00 cash to settlement. This property value increased because of the repairs, upgrades and modification completed on this property. In this changing neighborhood, it would have cost substantially more to purchase a similar property if one could be located.
Location
This location easily supported the renovation of this property. There was no deferred maintenance or property condition problem on this Multi-Family 2 Unit home after completion of the total renovation.
What do the Neighbors Say?
This was huge upgrade for the beautification of this neighborhood, and the neighbors are thrilled with the upgrade.
Rental Income
The rental Income generated on the 2nd unit easily supports the monthly payment of this property.
Final Outcome
The Borrower is thrilled beyond words with the Renovation loan. This location is perfect for access to Capitol Hill, and easy to rent. The borrowers are a husband and wife. The wife was able to quit her job and become a stay at home Mom because of the income generated from the 2nd unit.
The Story
Some time ago, the Quick Stop Turkey Burger carryout in Trinidad served its final namesake platter. The out-of-town drivers barreling west down Florida Avenue wouldn’t know that, seeing as the restaurant’s sign still looms invitingly where the thoroughfare meets Staples Street NE. You’d have to look a bit closer for the indications of disuse: The cracked ’80s-era Pepsi sign, the broken plastic clock, the metal accordion gate covering the door.
The commercial boom has reached this part of town, and the shuttered carryout could feasibly have a new tenant by next week, assuming one of the three phone numbers plastered to the door leads to the right realtor. Quick Stop Turkey Burger is just the kind of commercial shell that neighborhood boosters can’t wait to see reoccupied and refurbished—or at least mercifully stripped bare. Most neighbors would consider the latter an improvement, although there’s much to appreciate in the carryout’s façade.
Take the name itself. In a city where carryouts love to proclaim their ability to cook all foods imaginable—chinese food, american food, seafood, chicken, subs—here was a proprietor staking a claim to a single, relatively fringe takeout dish. And consider the delightful exhortation toward self-improvement—eat your way to better health. Was there ever another carryout in this town that promoted healthy eating habits? You have to wonder: Maybe if they’d plugged wings with mambo sauce instead, they’d still be open. And, lastly, there’s that vintage outdoor clock, which one day, presumably long ago, came to rest at 3:28 and 10 seconds, though we’ll never know whether in the a.m. or p.m. Who knows how many watchless block-huggers depended on it for the time before it died.
Walk the H Street corridor near Quick Stop Turkey Burger and the commercial signs will reveal two cities, maybe even three or four. No matter what the line outside the recently opened Rock and Roll Hotel might suggest, nightlife is nothing new to this strip. The sign above the old Micky’s Bar and Lounge still stands—even though the doors seem locked for good—recalling another era and probably a different clientele. Head off into the alleys and the side streets and you’ll travel back decades, maybe even a century, to a time before $1,000 store signs, when owners heralded their businesses with nothing more than weather-resistant white paint over red brick. k. bretler, one rotting, vacant building still reads faintly on its side. groceries—meats—provisions. There are signs around town that urge us to buy used autos at a car lot that no longer exists, to partake in happy-hour cocktails at a bar that’s long been boarded up, and to spend the night at a hotel that doesn’t appear to have seen a guest in years.
Businesses come and go in our main corridors—Georgia Avenue NW, Rhode Island Avenue NE, Martin Luther King Jr. Avenue SE—but their façades have a way of long outlasting them. We may be in the midst of widespread revitalization here in D.C., but we’re not the Lower East Side of Manhattan; our vacant spaces don’t fill overnight. They sit and languish, waiting for a critical mass to determine that they be remade as coffee shops or hipster bars. If market forces are any indication, the old Quick Stop Turkey Burger could soon become a bustling yoga studio. And when it does, we shouldn’t expect an outdoor clock. —Dave Jamieson CP
Total Home Renovation
TOTAL HOME RENOVATION WITH A 203K LOAN
Example of a 203k Renovation Loan
This is an example of an FHA 203k Renovation loan on a home that needed a full renovation to fit the neighborhood standard. The finished home is 3,310 Square feet, 4 Bedrooms and 3 Bathrooms
Details of Monthly Payments Added to the Loan Amount
While this property was under renovation, all of the monthly payments were financed in the loan amount. Therefore, no monthly payments were needed while the contractor completed the necessary and desired renovations on the subject property. Thus, the borrower did not need to make two payments (one for the current living arrangements and the other on the subject property). The payments were added to the loan amount for a period of 6 months, while completing the property, then the borrower began making payments on their own, consistent with the loan terms.
The Borrower
The neighborhood was a highly desirable location for the borrower, but the existing housing stock was too expensive and did not fit his personal or family needs, nor was it to his personal satisfaction. The renovation option was not only affordable, but also preferred because the borrower was able to get the house he wanted, in the location desired, at an affordable price.
Appraisal
The Future Value of this home far exceeded the Acquisition Cost of the property. The down payment was 3.5% of the Acquisition Cost. The borrower was able to obtain the property of his dreams with substantial savings to Down payment, monthly payment and Cost to Close the loan. The location easily supported the Renovation of this property. There was no deferred maintenance, or property condition problems on this home after all of the renovations were complete.
Final Outcome
The Borrower was thrilled with his selection to use Renovation Financing. The location was perfect for his commute to work, the neighborhood was ideal for his family, and the property met all of his personal needs.