+2 votes
I have owned the house for close to 2 years.  It is a 2,300 sq. ft. 1894 Victorian single family home in a historic district in Washington, DC.  We have blueprints for a multi-story, multi-room renovation that will total about $450,000 - 500,000.  The house was purchased for $1,435,000 and the renovations would bring the value to about $2,000,000.  We have just over 20% equity on the home, mostly from the initial down payment so HELOC / home equity loan wouldn't be helpful.
asked Jun 23, 2018 in FHA Loans by JF

2 Answers

+1 vote
You can do a FHA 203k Loan with a current home. How it works is we pay off your existing mortgage and get you a new mortgage with the construction financing. Once the construction is completed, the FHA 203k Loan will convert to a 30 year fixed rate loan. The issue I see is the loan limit in your county. What zip code are you in? Do you know the maximum FHA loan limit?

Gustan Cho NMLS 873293
answered Jun 23, 2018 by GustanCho (106,540 points)
0 votes
Gus is correct. You will run into a problem with your loan amount. The FHA Loan Limit in DC is $679,650 for a one-family home.
answered Jun 26, 2018 by MikeGracz (16,780 points)

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