Financing in 72204>Question Details

zs.miles85, Home Buyer in 72204

What major lender will allow the homeowner to perform their own minor work with a 203k loan?

Asked by zs.miles85, 72204 Wed Dec 5, 2012

I'm trying to buy a house that needs a lot of repairs, has old wood siding that needs to be replaced, needs a door replaced, eves/soffits replaced, new carpets throughout house, and some drywall repair. I can perform a lot of this myself and I understand FHA allows me to do so with the right lender. I cannot find a lender that will allow me to do the work. I'm trying to save money by doing it myself.

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As John references below, the guidelines are determined by FHA, not the specific lender that you choose. The lender is dictated to follow the FHA guidelines. The primary questions are which lenders will fund a FHA 203K loan and does the property qualify? There are not very many lenders in Central Arkansas who will fund a 203K loan. I have many different lender contacts and would be glad to make some calls to see who is available. You can contact me at 5015809151 or scottadeaton@sbcglobal.net and lets discuss the options.
0 votes Thank Flag Link Wed Dec 5, 2012
First of all let me say "I am NOT a mortgage lender, and I have NO IDEA whether or not this would or would not be considered mortgage fraud. I'm just relaying information. My guess is that most lenders are afraid of being complicit in mortgage fraud, and rightly so - the regulators are watching their industry much closer these days and fines have gotten hefty. If the repairs are legitimate and the intent is honest, I can understand that some may see no harm in it although the lenders may not care about this. I've heard of someone utilizing the contractor they chose to do repairs and estimates, to also add to his estimate the approximate cost of materials only (no labor) for the repairs that YOU intend to do yourself. I assume their thinking was that this way there is no money that could be construed as being misappropriated. But read up on it, and protect yourself, because that person may have been breaking the law, I am not totally versed in the wording regarding that particular type of loan.



Mitch
0 votes Thank Flag Link Wed Dec 5, 2012
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