By Jamis Minnis, June 4, 2021
So far, the verdict is still out!
Recently, I came across a home in a wonderful neighborhood that was listed for cash or rehab only. It sat for more than 2 weeks and I was so curious of why each time it popped up in my search. So, I decided to investigate more of what’s behind the mysterious rehab loan or alternatively known as a 203k. Once reading more about it, the Aries in me yelled out “Challenge Accepted” and two days later, my partner and I had an offer accepted! Dang ok! I guess we’re doing this.
The most surprising things that I have learned thus far.
- You actually only need $5k in repairs to qualify it as a rehab loan. Sweet! That’s paint and refinishing the floors alone.
- You need to have a contractor that you are hoping to work with identified IMMEDIATELY. This contractor should be SOLID and flexible. There is a pile of docs that the contractor needs to fill out. They are also required to have been in the industry for several years. So far our contractor is on it. I have promised him several 6 packs of beer once this rat race is over.
- You get two appraisals. An initial appraisal and then another once repairs are completed.
- You need more time to close than a traditional Conv or FHA loan. In addition to underwriting, you have a project team managing the construction part of the deal.
- You need to be quick on your vision of repairs. We had about one week to have a concrete plan on what repairs where going to be completed, costs, and timeline.
I’m still in the process of it all………
I’ll let you know how it turns out!
Jamis Minnis
Broker | OR
She/They
I'm just out here trying to be the Simon Biles of Real Estate. I'm a BIPOC-Queer Realtor. A Foodie. A Cat-Dad. A Concert/Music Festival Enthusiast...
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- T: 503-756-0005
- jamis@livingroomre.com
