Sunday, April 6, 2014

Some Interesting Questions This Week About What We Can Do With A 203k


This last week was riddled with questions of "can I do this with an FHA 203k?"

1) I have a house on a lot zoned for a triplex and large enough for a triplex. Can I build two more units on this lot using the 203k? Yes, you can.

2) I have a single family home on a lot zoned for a duplex. Can I add a second unit on top of the first or existing unit? Yes, it is possible. The foundation may not be able to support the weight so, if not, it may be better to lift the existing home and install the second unit on the bottom as you replace the foundation. But to answer your question, yes, it is possible.

3) I found a wonderful property in the Los Gatos hills area but all that is left on the lot is the original foundation. Can I build a home on that foundation? Yes, you likely can. We would have to take a look at the foundation to verify that but we can build a home on an existing foundation. We can also put a foundation under an existing house. We had 104 year old home that was on a pier and post foundation and using this program we were able to build a perimeter foundation.

4) The pool at my new home is shot... terrible condition. Can we remove or fill in the pool using the FHA 203k program? As you know we can only make improvements to a pool for up to $1,500 as it is considered a "luxury item" but to "decommission a pool" isn't making an improvement, it is grading and landscaping to fill in a large hole and is acceptable. Too bad it isn't quite that easy though. There are rules about "decommissioning a swimming pool" so check with your local jurisdiction. It has to be done in a particular way so it doesn't float to the surface one day.