Success Stories

Here are some examples of real life closings that show you the true power of this loan:

Borrower 1: (Purchase – City of Chicago)

This borrower purchased a 3-unit property as an REO and did a Standard 203k loan with a plan review.

Purchase Price:  $140,000

Total Repairs:  $146,500

Loan Amount:  $271,690

12 Months Later:

Appraised Value: $380,000

Conventional Loan Amount: $285,000

Cash Out at Closing: $10,000

EQUITY POSITION: 75.0% Loan to Value!

 

Borrower 2: (Purchase – City of Chicago)

This borrower purchased a 3-unit property as an REO and did a Standard 203k loan with a plan review.

Purchase Price:  $92,550

Total Repairs:  $151,234

Loan Amount:  $278,759

Appraised Value:  $365,000 with repairs.

EQUITY POSITION: 76.4% Loan to Value!

 

Borrower 3: (Refinance – City of Chicago)

As-Is Value:  $27,500

Total Repairs:  $100,000

Loan Amount:  $118,000

Appraised Value:  $165,000 with repairs.

EQUITY POSITION: 71.5% Loan to Value!

Each of these borrowers was able to refinance into a conventional loan as a result of the equity gained from the renovation.  At minimum, this saved each borrower the monthly mortgage insurance premiums.

All this with a 3.5% down payment!!!!

Now tell yourself that this isn’t a great loan for this market. Buy a distressed property, clean it up, make it YOUR home the way YOU want it and get instant equity!