FHA 203k Exit Prior to construction

[Jesse Temple]

Hello all,

I have been secretly trolling these forums for several years without any activity. Before starting, I want to thank all of you users, as you offer much needed detailed advice on everything in the world of RE.

So about myself, I currently purchased my first EVER property a 3 family in Zip 12159.  I purchased using a 203k loan @ $135k purchase, $75k Reno, $8k reserve.  on purchase the property was roughly 3 units, 2 1BD/1BA, 1 2BD/1BA, @ 848, 725, 560 sq ft.  When initial estimates were completed blueprints were not yet completed, and after completing blueprints estimates skyrocketed.  Blueprints redesigned to a 4 BD/2.5BA, 1 BD/1BA, 1 BD/1BA @ 1590, 540, 485 sq ft. space.  it was Originally a patch and paint job, to a complete gut reno.  The current estimate is $224k.  Bank will not move on the scope of work originally projected.  It would be very challenging to redo drawings, permits, and get new estimates (based on prints) and not know final construction cost, to match bank scope of work.  The options I see are, Cash + Personal Finance my way into property accomplishing as much as possible on the 224k, lowering expense with sweat equity, or refinance mortgage completely to compensate for cash shortage.  i wanted to pitch this out to the community to get advice on completing and exiting this very ambitious product.

Thanks for your help!!!