We (Wintrust Mortgage) have been writing 203K Streamlines and Full 203K loans without any problems; the 203K one of our niche programs.
Please feel free to contact me directly at 773-456-9662 or firstname.lastname@example.org if you would like more information or help getting started with the approval process.
This shortens the closing time by weeks. Try http://www.cfs-mortgage.com/203k for more information.
First, realize that this loan is a niche and not all lenders offer it. It is best to search out the right lender, Realtor and consultant; In fact, if you find the consultant first, will find the lender. The REO departments are opening up widely to the 203(k) as it is just about the only loan available for any property that has repair conditions. You will see significant changes to the program in 2011 and for the better. Good Luck
Sellers of REO's are becoming more open to accepting offers using an FHA 203k loan. Lenders originating loans are also becoming more open to offering the 203k. Any FHA lender is allowed to do 203k's as long as they have the back-end processes in place. Make certain that you use an experienced 203k lender, a Realtor who knows the correct verbiage to include in any 203k offer and a Certified 203k Contractor. Go to http://203kContractors.com to locate these Certified 203k Contractors.
Contractor Directory for the FHA 203(k) loan
Best bet for you is to consult a real estate agent to help you figure out if you qualify, personally, and to help you work with a lender to narrow down your search to properties that will likely qualify - so that you don't waste time and effort in finding a home that will work for you.
If you would like some assistance, we have a great number of experts who have experience with 203k financing and helping prosective buyers in successfully completing such transactions. Check us out here: http://www.dreamtown.com/agents/dream-town.htm
Good luck to you! It's a great market to be finding a deal!
To answer your question, no. They are riskier from a lender perspective, which is why the interest rate is higher for a FHA 203k loan. But, the qualifications are generally no different for an FHA 203k mortgage than for a regular FHA mortgage. At Ardain Mortgage, we specialize in the FHA 203k rehab loans, and we help clients with both the regular FHA 203k and the streamline. It is a great loan product, and I enjoy writing them. Here's a great overview article written by the owner of my company regarding the FHA 203k loan: http://www.moneypress.com/fha203k-rehabilitation-loans.htm
Call me to get pre-approved or with any question you may have.
Senior Loan Originator
Americorp Real Estate
Brokers Associate, e-PRO
The property needs to be inspected by FHA before and after and needs to be appraised in "As-Is" condition and after it is improved.
Please see my blog for some tips on getting a mortgage in todays market.
American Invsco Realty
The guidelines for a 203k and Fha are almost the same. The main advantage of a fha vs conventional loan is that the credit qualifying criteria for a borrower are not as strict as conventional loan financing and the down payment or Equity requirements are less. In comparing a purchase money FHA loan against a Conforming or A paper loan, the FHA loan will generally have the least amount of money required to close and the lower payment.
The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance programs. These programs operate through FHA-approved lending institutions which submit applications to have the property appraised and have the buyer's credit approved. These lenders fund the mortgage loans which the Department insures. HUD does not make direct loans to help people buy homes.
Hope this helps,
I have worked with a few buyers recently who obtained 203K loans without many problems. Just make sure you find a lender, agent, consultant, and contractor who know the process. If you are looking for any recommendations please feel free to reach out to me.