Thursday, March 5, 2015

Can I Take a Non Residential Use Property & Convert it with the 203k?


That has been a question for years that keeps cropping up.

This past year I had one lender who kept finding these properties where the foundation is all that remained. In one case there was a barn they people wanted to convert to a living area. Some of these old barns never had a foundation which makes things a little difficult for sure.

In another casee he found a foundation where the house had burned to the ground years ago and no one had purchased the site to rebuild. If we use that existing foundation, even if we add to it, we will likely be okay to move ahead.

This house is located off Felter Road in Milpitas/San Jose area. Clearly is a 203k prospect. This one actually conforms to the standard guideline that everyone is familiar with.

If you are looking to convert a non residential use to a residential use and you would like to read it in HUD's own writing here it is just for you. Here you will find the guideline clearly depicts a non residential land use converting to a residential property.

That should open your eyes to some possibilities in nearly every older community where the land uses have changed over a longer period of time and now you can see some jewels in the rough.

Have you been trying to sell that commercial building for years and it just sits there? How about a 203k with only 3.5% down payment and do it as a mixed use building?