"As completed" appraisal

[crazyshakespeare]

I'm currently researching the Fannie Mae homestyle and 203 loan process. Stipulations state that prior to receiving the loan and to help the appraiser, the buyer must submit a construction plan either from a contractor or architect to determine as complete value...My question is this...if you do not have possession of the property and you haven't closed how is one supposed to do so. One, I know most architects or contractors won't draw up plans prior to closing and two, if you do find one that will work under those conditions and the leader does not approve your loan or changes, are you just out that money. Is the buyer just continually out of pocket for the architect per property till landing approval by the leander? How does the buyer not rack up tens of thousands of dollars trying to find the right property? Help me out with this process as the information on the net is lacking.

 

[CANative]

Can you get a loan commitment based on your credit and income?

 

[crazyshakespeare]

Can you get a loan commitment based on your credit and income?

I assume that would fix the issue of getting the architect or contractor to take the job but I still worry about the lender approving the plans or if the "as completed" appraisal is no where near the cost of the property and reno. At that point isnt the buyer just screwed for the architect costs and then have to do it all over again on a new property?

 

[CANative]

There are always risks in real estate.

I've had multiple assignments like this. Sometimes the plans have problems and I point them out prior to finishing the assignment. Back it goes to the lender and their architect/contractor for revisions.

 

[Terrel L. Shields]

Is the buyer just continually out of pocket for the architect per property

A - you need to decide what property you wish to buy and let the lender guide you. or,
B - you might hire an appraiser (independent of the one that the lender will hire) to help you select an appropriate property.

 

[spittman]

Have you spoken to any lenders yet? I know HomeBridge and AnnieMac offer Homestyle loans. Why not contact either of them and ask how that works.

***disclaimer*** I am not promoting them, just passing information I have seen during my experiences.

 

[Joe Flacco]

Call a real estate agent and tell them that you are interested in buying a house and doing a renovation.

 

[crazyshakespeare]

Have you spoken to any lenders yet? I know HomeBridge and AnnieMac offer Homestyle loans. Why not contact either of them and ask how that works.

***disclaimer*** I am not promoting them, just passing information I have seen during my experiences.

I havent been able to reach someone to just answer the question that doesnt want to automatically go down the pre qualification road.

 

[sputnam]

The renovation plan is part of the loan documentation. It's not required in your search for the property. You, as the buyer/investor, are expected to have the requisite knowledge needed to select the property. A lot of newbies at it lose money the first time or even several times until they learn.

 

[Joe Flacco]

It is what real estate agents are for man. Guide you through the process. Call some real estate agents and ask questions to see if they are knowledgeable about renovation / construction and the financing options. It is what real estate agents are for.