“The Divorced, Debt-ridden Dad Who Wanted the Best for His Kids”

When Jeff was referred to me in late Summer of 2015, he wanted to purchase a home in the same town as his ex-wife so that he wouldn’t disrupt his kids’ lives. He’d tried going to a regular bank, however, with his other debt and child support obligations, they wouldn’t qualify him for anywhere near what he needed in order to purchase a suitable home.

My first objective was to reset his vision of what was possible by showing him how an FHA loan would permit him to expand his budget to a range that would allow him to buy without compromising his expectations. And then, he found ‘The One’ – a perfect antique (circa 1840) home that would be just right for his kids and him.

Except it wasn’t…

I suppose it’s to be expected – when you're 175+ years-old, there are bound to be things that need fixing. The challenge was where to find the money to make that work. I helped Jeff puzzle through the things that must be done, either because of FHA requirements or Jeff’s, as well as prioritizing some “would like to have’s” that he’d envisioned. From there, he worked with a trusted contractor to develop a scope and quote for the work.

Because we’d settled on a 203k Streamline Rehab loan, I made sure that the scope stayed away from anything that could be deemed “structural” and Jeff’s contractor was happy to assist. However, the appraiser came back saying that there was a major carrying beam in the basement that needed to be replaced. That not only derailed the Streamline but also caused a lot of alarm bells to go off since the home inspector had investigated the home thoroughly.

A little probing goes a long-way…

I discovered that the appraiser had been a little quick to decide there was a structural problem, Yes, there was an original beam that had prior termite infestation, resulting in it no longer being viable. However, a prior homeowner had sistered the beam so that there was sufficient support. Getting the appraiser to agree meant having a structural engineer to certify that the building was sound – not only a good idea for Jeff but also an affordable investment at a cost of less than $300.

At the end of the day, Jeff’s loan closed on-time and on-budget, the renovations were completed before Winter set in, and Jeff and his family couldn’t be happier. That's the power of the FHA 203k loan products done properly: they don't just improve homes, they put families back together.