Financing in 19148>Question Details

Lorri Paster, Real Estate Pro in Blue Bell, PA

Any lenders doing 203K loans?

Asked by Lorri Paster, Blue Bell, PA Mon May 2, 2011

I'm looking for a lender who can do a 203K loan. My client is buying a property from a builder...right now its an empty lot and the builder is building a home to my buyers specifications. Supposedly once we get a lender who can do the loan, we make settlement immediately on the empty lot, then the lender periodically comes and checks on the different stages of the new home. We tried one lender so far who said his underwriter denied the loan.

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We are licensed in NJ, but what you are trying to do is a no good. The reason is, this program was designed to help homeowners who have been faced with a natural disaster. I have done a full on 203K (not Streamline) on a property that was nothing but a foundation. That's the key, the property had been been issued a certificate of occupancy. New construction that has not been finalized, will not cut it. If the Builder will just keep on going it would be better for you or your client so we would only need to do is a straight purchase not a Construction to Perm or takeout loan.

Best of Luck!
0 votes Thank Flag Link Tue Apr 16, 2013
Im looking for a 203K loan in the new jersey area. anyone have any contacts in the area of New Jersey?
0 votes Thank Flag Link Tue Apr 16, 2013
Lorri,

The FHA 203k will NOT work for a construction loan. You need a different type of loan. The ONLY way it would work, is if there is an existing foundation! SO... if the builder will fund that piece you could then Plan and close on the loan, but I don't see that happening...

There are other options... feel free to give me a ring! :)

b
Web Reference: http://www.203kworld.com
0 votes Thank Flag Link Wed May 4, 2011
I have a good lender, Nick Shestock, 570-366-6363 and he does 203 k loans.
0 votes Thank Flag Link Mon May 2, 2011
Lorri you need someone who can do a construction loan. You may be able to find a local lender that does a construction to perm loan program and I would have my clients use something like this.
Here is a link from Mortgage News Daily that explains it.
http://www.mortgagenewsdaily.com/wiki/Construction_Perm_Loans.asp
0 votes Thank Flag Link Mon May 2, 2011
Pat Lopez, Cardinal Fnancial, 267-688-6010. He is excellent and we highly recommend him.
0 votes Thank Flag Link Mon May 2, 2011
Hello Lori,

I left you a voice message. I have 203k loans but they will not help you here. I do have several lenders for construction loans and construction perm and I would be happy to discuss your clients options.

Best Regards,

Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
0 votes Thank Flag Link Mon May 2, 2011
Lorri,

What you need is a residential construction lender that will finance 'owner-occupied' homes. A traditional 203(k) loan is not intended to build a new house from ground up, rather, it is intended for improvements to an existing structure.

I'd check with your local mortgage banker/brokers that might have access to one of these types of lenders or have your client & builder go to a local Bank to get interim construction financing, which will require a 'takeout/permanent financing' upon construction completion.

I know they exist since I have access to 2 of these type of construction to permanent lenders in Central Texas but not in PA.

Good luck.
0 votes Thank Flag Link Mon May 2, 2011
Lorri
203k definitely will not work for this. How much does your buyer have to invest in the new home? I think a construction loan is your only viable option.
0 votes Thank Flag Link Mon May 2, 2011
Thanks Phong, I will give them a try! :)
0 votes Thank Flag Link Mon May 2, 2011
I really think you are looking for a construction lender not a 203K lender. While there are a significant number of advantages associated with an FHA 203(k) construction loan. The program does not allow for ground up construction loans, it does allow for remodeling or rehabilitating existing single family home as well as 2-4 units and condominiums. There must be a existing dwelling as a base for the project. Sorry but check with some local independent or regional banks in your area.
0 votes Thank Flag Link Mon May 2, 2011
Hi Lorri,

How are you? Thank you for your inquiry. We have a direct lender that we use that does 203K FHA loans. And there is this one Senior Loan officer that is especially specialized in 203K loans. Here's his contact info:

Joseph K. Keller
Allied Mortgage Group
1033-A Mill Creek Drive
Feasterville, PA 19053
Mobile: (215) 817-9084
Office: (215) 355-5626
Fax: (215) 554-6970
Email: jkeller@alliedmg.com

If you have any questions, please feel free to email me at Phong.Lam@c21ag.com or call me at (267) 918-1880.

Hope that helps!

***** If you like the answer - please consider giving it a Thumbs-up & making it a "Best Answer" ! Thank you! *****

Best Regards,
Phong Lam, CSM
REALTOR®
CENTURY 21 Advantage Gold
2010 Oregon Avenue
Philadelphia, PA 19145
Business: (215) 465-1400, ext. 508
Fax: (215) 336-7793
Mobile: (267) 918-1880
Email: Phong.Lam@c21ag.com http://www.c21ag.com
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0 votes Thank Flag Link Mon May 2, 2011
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