203k is loan is best for you. Give me a call I can get you pre qualified. I am a mortgage broker in Illinois. 630-330-2229

Thu Jun 19 2008, 03:47

I wouldn't advise you to fix anything before closing. What happens if you don't close and you spent all this money to get an appraisel and be able to close. What happens if it doesn't appraise out? You will not get that money back, unless there is something in your contract that states you will be reimbursed.

Sat Jun 14 2008, 13:47

One isn't better than the other - they are different loans for different purposes. The 203(k) is designed for buying a distressed property or a property that you would like to have improved as a part of the mortgage. The costs to renovate or improve the property are included in your mortgage. The 203(b) is for straight-up purchases and only includes the cost of the house. -Inspector Mike Savage

Fri Jun 13 2008, 14:11

Here is a link right to FHA's webpage describing rehab loans.

http://portal.hud.gov/portal/page?_pageid=33,717160&_dad=por…

Greg Zaccagni

Thu Jun 12 2008, 07:50

Which is better 203k or 203b?

Wed Jun 11 2008, 16:49

Charita, read up on the FHA 203(k) loan; it's a rehab mortgage that includes the price of the house AND the cost of rehab repairs. We're not talking about a regular FHA mortgage. -Inspector Mike Savage

Sat May 17 2008, 06:27

FHA is definitely not an option. Major fixer upper may require "cash on" deal, but check with the bank. Let them know the condition of the property first before placing an offer. It will save you time.

Fri May 16 2008, 12:40

"I'm so glad I got an opportunity to read the "Good-day, I am Mr. Bill Richards" commercial!!"

I was wondering if he's legitimate, then I was reassured by his intro that he is. -Mike Savage

Fri May 16 2008, 10:47

I'm not an appraiser and I don't think an inspector should offer an opinion as to whether or not a house is a "good buy", but in preliminary situations I have offered to do a "feasibility study", which is an inspection and an abbreviated report on the estimated rehab costs. Potential buyers have found this useful in determining whether or not to proceed and I do credit the cost of the feasibility study toward the price of the rehab consulting package. With the rehab cost estimates, the purchase price and an estimate of "after improved" value from an appraiser you should have all of the information you need to make a good decision about whether or not to purchase. -Inspector Mike Savage

Thu May 15 2008, 16:00

I'm so glad I got an opportunity to read the "Good-day, I am Mr. Bill Richards" commercial!!

Thu May 15 2008, 15:52

Inspector Mike - as a rehab consultant, can you give a good idea of whether its a good buy investment wise or not?

Wed May 14 2008, 18:19

No, Zira, I don't think you're nuts at all. You could do very well with the right property at the right price. Dino, you're right about a 203(b) [standard FHA loan] and foreclosures, but the question was about an FHA 203(k) loan, which is designed to purchase distressed properties. -Inspector Mike Savage

Sat May 10 2008, 15:12

Hard - as in impossible? Or it all depends on the appraisal?

Sat May 10 2008, 12:50

I don't think everyone realizes how hard it is to get an FHA loan for a foreclosure.

Fri May 9 2008, 21:23

A little off topic, but Mike, you are out there every day looking at places and prices, do you think it is nuts to buy a fixer (or anything) int his market in Chicago? There are other threads going on Trulia that suggest I would be nuts to buy, but surely the appraisal that is required for the FHA loan will be spot on in terms of market value right now?

Fri May 9 2008, 19:18

You WILL need a contractor who has agreed to do the work as a condition for closing. The contractor does indeed need to be licensed and the lender is supposed to run a business credit check on the contractor. The 203k is not intended for the owner to do the work (unless the borrower is a licensed contractor). -Mike Savage, MJS Inspections, Inc.

Fri May 9 2008, 10:16

It will be the primamary residence. The 203 K loan sounds good. One of the answers below said -
"Just remember that to use this particular loan, please hire a licensed and very reputable contractor to assist you with the repair work"
IS that a friendly advice or an actual requirement to get this loan? What are the conditions of 203K? Do i need to contract a company or can i do the work myself?

Thu May 8 2008, 08:12

Cynthia Davis-Means, Flagstar Bank, (708) 466-8134 or (630) 925-4501
Fern Russell, Country Mortgage Services, (847) 368-9180
Tessie Krygier, Wells Fargo Home Mortgage, (708) 417-1950 or (708) 226-7401
Giovanni, Moonstar Mortgage, (847) 758-6666

Let me know if you need more. -Mike Savage

Thu May 8 2008, 06:45

Bob Ullman at 603-888-7788 may be able to help you. He is very creative when it comes to finding financing nationwide.

Wed May 7 2008, 19:10