This afternoon I close on my second home in Anacostia. Like Shannon 1 (my first home, which I fondly call “Miss Shannon”), this property requires rehabilitation. While not new to the renovation process per se, it is the first time that I will be working with a renovation loan. Also known as a 203K loan, this form of financing is backed by the federal government and is available to buyers who wish to buy a home requiring both minor (e.g. painting) and extensive repairs. While the loan is appealing and will help me not only purchase the property but complete a full renovation (I fall into the latter of the loan type categories), it has been a labor of love before the actual physical labor associated with any home renovation has even begun!
You see, my lender has played an important role not only in financing the purchase of the house, but also in the renovation plans (which impact the property’s post-renovation appraised value); my contractor’s professional and financial qualifications; and, the monies associated with the renovation process (e.g. labor, materials, architectural design, permits, etc.). Simply closing on the loan after obtaining a ratified contract has taken nearly 2 months of preparation! So, if you’re looking to buy and renovate, not only can I now help you purchase your home, but I can better advise you on the ins and outs of the 203K loan.