Using a 203k loan to build a new home on existing foundation
Hi all!
I am in the early stages of a 203k purchase/investment in Jersey City or Union City, New Jersey (NJ). I have been digging through the guidance and am wondering if anyone has ever taken advantage of the following clause regarding 203k improvement types from the HUD SFH Handbook 4000.1, pg 374:
- "reconstructing a Structure that has been or will be demolished, provided the complete existing foundation system is not affected and will still be used;"
- "repairing, reconstructing or elevating an existing foundation where the Structure will not be demolished;"
Guidance link: https://www.hud.gov/sites/dfiles/OCHCO/documents/4000.1hsgh.pdf
Has anyone ever built a new home on top of an existing foundation using a 203k loan? If not, has anyone built a new home on an existing foundation? And in regards to both of the above questions, what should I be thinking about?