Interested in Baltimore..Yes looking to move there.

[kinkytoes]

Davecj, maybe it would help to share where you got your loan for the construction.

[mrboltonman]

I had to do work on my property it didn't have kitchens so it wasn't habitable. I got a FHA 203k loan.

Here is some info on it:
Rehab a Home W/Hud's 203k Rehab Program

You have to have an idea how much it will cost to renovate the property. You hire a FHA planner to do a work writeup to let you know everything that has to be done and approximately how much it will cost. Then you have to get estimates (3) on getting someone to do the work. The easiest way to do the work is get one estimate because of the paper work. An appraisal will be done on the current value and final value. You will create a draw schedule for the different projects and that's how the lender will reimburse you or the contractor. It's nice to have extra money to buy certain items so you aren't waiting for the lender to reimburse you.

[davecj]

Originally Posted by kinkytoes

Davecj, maybe it would help to share where you got your loan for the construction.

Sure no problem. The house, by FHA requirements, met all their standards as it was so we were able to take out a loan for 100% financing minus 3.5% put in by us. From there, we borrowed $20000 from a family member (payable over 4 years) and each put in ~$5000 of our own cash.

Where we got help was in the $8500 tax credit that you can file against last years tax returns and a $7500 HD credit line.

We used the HD line to pay for the kitchen and bathrooms (0% interest/0 payments for 12 months) and the tax credit to pay the electrician, plumber and HVAC subs and our cash to pay the general contractor. The $20000 went to supplies.

Everyone is paid off except for HD which we'll pay off by summer time.

It's a bit backward way of doing it but we decided to do the construction in cash as opposed to taking out a 2nd mortgage or HELOC to do so.

[kinkytoes]

Originally Posted by davecj

Sure no problem. The house, by FHA requirements, met all their standards as it was so we were able to take out a loan for 100% financing minus 3.5% put in by us. From there, we borrowed $20000 from a family member (payable over 4 years) and each put in ~$5000 of our own cash.

Where we got help was in the $8500 tax credit that you can file against last years tax returns and a $7500 HD credit line.

We used the HD line to pay for the kitchen and bathrooms (0% interest/0 payments for 12 months) and the tax credit to pay the electrician, plumber and HVAC subs and our cash to pay the general contractor. The $20000 went to supplies.

Everyone is paid off except for HD which we'll pay off by summer time.

It's a bit backward way of doing it but we decided to do the construction in cash as opposed to taking out a 2nd mortgage or HELOC to do so.

Thanks!