Modifying the Way People purchase houses: applying the 203k Program to Purchase Dream Homes

When commuting to her job one morning in the beginning of summer, prospective home buyer Lori Kramer was recollecting about the houses she and her hubby had checked-out the day before. Then, she envisioned that it would, in all probability, alter the direction of their home hunting entirely.

My house at the time was listed for lower than the loan we were okayed for and it called for much added work. I questioned if we could utilize the remaining cash to redo a property we were looking at and make it ours, says Kramer of Jacksonville, Florida.

At that time, Kramer phoned her Wells Fargo mortgage advisor, Diana Diallo, who reassured her about the 203k program. The FHA Section 203k legislation is specifically intended to renovate and repair single-family homes. The 203k is a single mortgage loan that allows you to use the money to buy a house and make necessary repairs and improvements.

As the market place evolved and we started to come across more  troubled properties, Wells Fargo, as a company, has directed its efforts to setting up a more efficient version of the regular 203k loan, explains Diallo.

After Kramer received an approval from Wells Fargo, she conferred with her Realtor, Shawn Norton of Keller Williams Realty, because she wanted to revisit a house she and her husband had considered before; it called for a lot of work, but Kramer considered the home’s potential and in due time bought it. Afterwards, Diallo worked with Kramer on selecting a home improvement vendor. She chose Lowes, a decision Kramer looks on as one of the wisest decisions we made.

After comparing service and cost, Lowes surpassed the other vendors in every aspect, explains Diallo. Lori chose Lowes to help her finish the remodel and repairs. The renovations needed  were rather all-encompassing.

With their 203k approval, the Kramers  refurbished the kitchen, replacing all cabinets and countertops. They also restored two bathrooms and installed new carpeting and fencing material around the home.

Lowes was extraordinary and they genuinely deserve most of the spotlight for their assistance, lauds Kramer. The Lowes team and their contractors helped with design, offered us some excellent tips and facilitated our purchase of materials and product choices; they did all of this and offered us the selections we required for an inexpensive price and within 45 days from escrow closing. They closed escrow on their home on August 18 and the all the work was finished by October 1.

We are very fortunate, says Kramer. This loan program altered the procedure we were using to buy a house. Thanks to the care and concern and help from Lowes, our home has turned out beautifully. The before and after is surreal. My kitchen is particularly impressive.

In this crazy up and down market, where so many homes have been empty or abandoned for so long or stripped and destroyed in some cases, this loan plan can really change the way folks are buying real estate, adds Kramer. I would unquestionably do this again and would absolutely contract again with Lowes to bring whatever our new  plan is to fruition.

Norton agrees.

I gained lots of useful and desirable knowledge from working on this with Lori and Diana, says Norton. This absolutely made us acknowledge that you can fix something if the structure is sound and you hire the right professionals to get the job done properly and cost effectively.

Many times, dwellings that would qualify for the 203k loan are in good neghborhoods but have cosmetic problems. This program opens the entire market place to the average home purchaser because the home improvements are built into the loan. I would not have been financially able to buy this house without the plan and I am very happy and completely satisfied, says Kramer.

Lowes representatives and contractors were exemplary and I wish other people could experience working with them too, she adds. Everyone was just incredible. Our cabinet installer was the top notch, courteous, skillful and professional as were all of the contractors who worked harmoniously with us throughout the remodelng project.

If you would like current information on the 203k loan program, visit www.hud.gov or www.re-buildusa.com.

Lowes contractors and installers are licensed where required. For more information, please visit www.lowes.com.