Renovation Financing

Adam, yes the house is a 2 fam, and I also am not sure 203k is appropriate. I thought that program is to rehab new purchases or to refi something purchased within past 6 months. The house is valued in the 1.75-2M range based on recent comps. First lien is 800K, HELOC is 300K, great rates on both. Have assumed if I increase the size of the HELOC I will lose my current rate, but maybe that’s the way to go. Curious about other options. Mopar, I have brough an architect through and 120K may be enough, but leaves little room for structural surprises given joist and exterior work, and some cushion would be nice in case I want to increase the scope a bit.

CGDad

in Brownstoner Renovation 13 years and 9 months ago

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lagniappe | 13 years and 10 months ago

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I currently live in CG in a condo and am looking to purchase a townhouse to accommodate my expanding family.  Given our budget, it is likely that we will need to buy something that needs a substantial amount of renovation. I am having difficulty finding information about how to finance the renovations through a bank loan either in connection with the purchase or within the first year or so after purchase.  So far I’ve found Wells Fargo and BofA to be the only major banks who lend in this space, but they only do 203k loans or other conforming (non-jumbo) loans.  Since the loan limit of around $800K for a two-family probably won’t even cover the purchase price, much less any renovations, of a townhouse in Cobble Hill/Carroll Gardens, that is not really an option. Does anyone have a recommendation for a more local lender or niche construction lender which finances this type of project? Or any suggestions for a mortgage broker with experience in this area? Thanks!

jockdeboeraia | 13 years and 9 months ago

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Look into a 203k. Call AnnMarie Manfredi, she can point you in the right direction with Wells Fargo. (866) 358-0092

mark11010 | 13 years and 9 months ago

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YOU SHOULD CONTACT THE CONTRACTOR WHO DID MY RENOVATION, SABATO FROM SJD CONSTRUCTION 1917-567-2513\. HE DID A GREAT JOB:)  HE ALSO REFERRED ME TO A LOAN OFFICER WHO HANDLES ALL TYPES OF LOANS INCLUDING 203K. GOOD LUCK!!

adam_dahill | 13 years and 9 months ago

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You may have trouble gettting the HELOC to subordinate behind a construction loan especially a 203k. You need to post more details about your full situation. How much is the home currently valued, how much do you owe on the first loan, what’s the rate, how much do you owe on the 2nd loan? How many units is the building? It appears to be a 2 fam from your post but I don’t want to assume.

callalily | 13 years and 9 months ago

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It’s possible your budget might be enough (depending on what you want/need to do). Maybe talk to a few architects first?