We are putting the wraps on another 203K loan. This one is a client who is refinancing his current home and will finish his basement with the proceeds of the 203K loan.
We got the appraisal and the after improvement value will be $350,000 and is a conservative value for what is really going on in the neighborhood. The only comparable sale with a finished basement sold for well over $400,000, so realistically his value is much higher than the appraiser’s value of it.
Just remember a 203K loan is not just for when you buy a home. And with the low rates, he is only going to see a $25 increase to his payment, but be paying far less interest per month on the new loan.