203k - can I supplement with my own cash?

The direct answer to your question is NO. A 203k, Streamline or Full has a specific "Scope of Work". This is then approved by the bank and as a condition of funding the Contractor MUST follow only the scope of work. NO self help is allowed on a 203k, meaning you could not do any of the work yourself. Additionally, moving a load bearing wall will require a building permit. A permit moves the transaction from a streamline to a full. Sorry, you are either going to have to NOT do the additional things you are talking about or do them as part of the Full 203k. By the way, there is nothing wrong with you providing the additional funds for some of the improvements. Work with your 203k lender to make sure the loan gets structured including your cash. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Michae_ : If you already have a lender, ask them for input. If you make significant changes, such as removing a structural wall, that could well change the loan approval and create problems. Why not do a "full" 203k instead where you don't have those limitations? you can reach me at pdumouchel@primelending.com or 843.619.6025 - I handle 203k and a conventional renovation loan as well and can work in TN. You may be too far into it to make changes...

Michael,Here are the issues I see with what you're wanting to do. On the 203K streamline, it is for the use of cosmetic only!. On the full 203K, if I posed your qeustion to 5 different investors I might use for the 203K, I guarantee they would all have different answers. Do you have a Lender that you have contacted with your above question. What I will tell you is that I have done several of these types of loans, so you really want to use somebody that has en expertise in the 203K program, if you don't you can really have major problems. The problems I see are that if you wanted to do the above, what the lender would see is that you move the wall, run into other serious problems, run way over budget can't finish the project then what happens! I would sugggest that if you want to do the streamline do what you need to do use the Gov't's money & then make your own repairs after the fact.

If you already have your loan in place, you're subject to their guidelines... if you don't have a loan in place, then just do a 203K, not the streamline. With a 203K, you can replace cabinets and move walls... talk to you broker and ask for his input... there might be some flexibility if your loan is in place... if you don't have a loan in place, then The best advice I can give you is to contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Let me echo the NO below. I am on a K loan now that was supposed to be supplemented by owner cash and he (a 1st time 'investor' - this is a 3-family in Boston) totally mis-understood the code implications of the non-K loan work.....and its a brutal mess. On his own volition but unknowingly several code thresholds (cost of repairs to assessed value ratio among them) and is on the hook per Boston Inspectional Services Division for all kinds of new systems. He can't get occupancy permits from the city and he has to pay the GC all the K loan proceeds and faces an unfinished project. If you have other plans, implement them once the K loan work is finished and paid. But overlapping scopes from different sources of funds can often be a nightmare. Don't plan such a project. You're K loan can say the WWU 'contractor to install owner supplied cabinets, up to xx LF of wall and xx LF of base cabinets' or something of that nature. I have never had a problem getting loan through underwriting if the owner supplies cabinets. Cliff Ageloff203K Loan Consultant P 1117Essex, MA