Renovation loans are not an easy find these days. Recently we were informed that Wells Fargo is no longer offering FHA 203k loans. The reason behind them not offering the FHA 203k renovation loan is because they were not wanting to accomodate for the new disclosures guidelines (TRID). These loans are a great opportunity for not only purchases but also refinances.
On average we usually do an equal amount of purchases and refinances with a FHA 203k loan and/or Conventional rehab. These loans are tending to grow more interest because of the nature of the market. Most clients are seeing that the market is really aggressive and they are not wanting to put their home on the market in order to find out that they may have a difficult time finding a new home so they choose to stay in the home they have and renovate to what they need.
For some clients they choose to use a renovation loan for their purchase because they found a home in the area they are wanting but it needs some renovation work, such as new roof, carpet, paint, HVAC unit, etc. and they don’t have the funds in savings to get the work completed and would choose to get them all done at once vs. purchasing and then trying to tackle each item as they live in the property.
With Wells Fargo choosing to opt out of these loans it leaves for a limited pool of lenders in the Denver Metro area, not to our concern for the fact that we are still able to provide these options. We feel that the needed changes that have happened with TRID, it may make these loans a bit more challenging on our end there is way too much of a need for these loans that we will not be pushing these loans aside, on the contrary we are happy to offer them.
If you have any questions on a renovation loan, whether it be the FHA 203k or a Conventional Rehab, please contact us. If you would like to get pre-approved for a renovation loan please send in an application.