203k Rehab Questions (Boston, Waltham: refinance, loan, how much)

[jmorgan79]

Anyone out there dealt with a 203k refinance before? We have a ton of questions and are having trouble locating anyone to help.

We currently have a 912 sqft single family in Waltham on an FHA loan. We would like to add a second floor with 3/4 bedrooms and a bathroom. We aren't sure the proper steps to be able to do this. I'm sure these things take a ton of time, so we want to be prepared and understand to what to expect. We could also just wait a year and half and buy bigger, but there are associated realtor fees/moving fees (and the thought of moving again stinks!) that we would like to avoid. Our house is not big enough for 5 people.

Thanks for reading/replying!

[kingeorge]

You can not move with any build or loan without vetting it first with Waltham town/laws/inspectors. Without having plans and their approval, nothing is possible. Also neighbors will be impacted, and they will have chance to have their say. This is your first step, and possible hurdle. Everything else is will depend on it. Did you talk to town officials yet?

Once you understand if you are able to build, and how much expansion is possible, rest should not be too hard to figure out. It might be very possible to expand, might not. Sometimes moving to bigger place is easier, with less stress, and even more cost effective?

Good luck.

[jmorgan79]

Thanks for the quick response, there are many homes on our street that have added a second floor - it's happening all over Waltham. So your suggesting going to city officials and getting approval to add a second floor?

[wolfgang239]

Originally Posted by jmorgan79

Thanks for the quick response, there are many homes on our street that have added a second floor - it's happening all over Waltham. So your suggesting going to city officials and getting approval to add a second floor?

There will be no second floor without going to the city officals. You can't just have someone build whatever you want, each locality has a process in place. Whoever you choose to perform this work should know this.

[jmorgan79]

Ok, thanks. We did know that - but just didn't realize we should do that before we talk to a contractor. Thanks!

[wolfgang239]

Originally Posted by jmorgan79

Ok, thanks. We did know that - but just didn't realize we should do that before we talk to a contractor. Thanks!

Contractor ---> City


The contractor you choose will provide a design that must be presented to the city. This assumes your house is able to withstand the additional level, you don't need a variance, etc. This process may involve architects and engineers before the city even gets a call.

[jmorgan79]

Thanks we will certainly keep that in mind if we decide to pursue this.

We are looking for someone in Waltham that has done a 203k refi for an addition that we can hopefully talk to and hear feedback on how it went for them. (dealing with the bank, the contractor, issues that came up, etc.)

[Nobodybody]

I am going through one now with a home purchase to add a new roof. In a nutshell, I've heard that full construction involving multiple elements, as you would be dealing with, can be complicated, so it is important to have a good lender. I just happen to have a name for you of a guy who works exclusively in 203k's and knows the program inside and out , and was basically able to prevent our purchase from falling through after another lender could not get us proper approval. I would strongly recommend - PM me if interested.

That said, I am certain the first step will be that you will need to have a full, detailed quote to provide (the contractor also has to be propertly licensed and insured, etc, and has to meet approval). You could contact the lender, explain your request, and he could point you in the right direction of what certification the contractor would need to have, so you don't waste any time on receiving a quote from a contractor who cannot be approved.

Also, I would have assumed that a certified and licensed contractor will take care of all permitting and approval for you, but WolfGang suggests otherwise, so I'd ask the contractor of your choice if they take care of that - some may have better connections in your town to get people approved.

[wolfgang239]

Originally Posted by Nobodybody

Also, I would have assumed that a certified and licensed contractor will take care of all permitting and approval for you, but WolfGang suggests otherwise, so I'd ask the contractor of your choice if they take care of that - some may have better connections in your town to get people approved.

Sorry if it came across this way, but I didn't intend to say that at all. The contractor should be responsible for pulling all necessary permits and presenting all plans to the city. Unless you do this professionally.

[flowbe202]

I'm in the city and my neighborhood planning board. Every month, new people come before the board saying "they didn't know" they needed approval/consent/neighborhood involvement on their project.

Sometimes, it is not a problem and the board and membership sends their approval to Boston's zoning appeal.

Other times, these unknowing homeowners have spent $$$ on architects, engineers, aura therapists, interior designers, etc. only to be told their project will never, ever happen even though so-and-so right next door did the same thing.

Just because your neighbor is raising their second floor, don't assume you're approved to do the same thing. Check with the town hall first before opening your wallet up to engineers and contractors.

Before moving forward with the town, you WILL need official plans, but no sense proceeding if your scope is totally out of alignment with the neighborhood.