Financing in Powhatan>Question Details

TInaPeters, Home Buyer in 48170

What's wrong with a 203k loan? My current lender is "not a fan" . He thinks they are a nightmare. Everything I read on the internet

Asked by TInaPeters, 48170 Tue Nov 20, 2012

says the opposite. We are looking at buying a home that needs cosmetic updates (badly). House is priced well under our budget but, we can't afford reno costs out of pocket.

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6
Tina Peters,

You need to find a lender that likes the 203k and that has experience with doing them. The use of the 203k has increased about 700% since 2007, which means that more people and lenders are using the 203k.

Don't let people scare you aware from the 203k. With interest rates very low and the ability to include renovation costs into your tax deductible mortgage and buy a home like a cash buyer (AS-IS), the 203k is amazing!

Here are 3 large national lenders that have experience with the 203k and actually like the 203k.
http://203kcontractors.com/preferredpartners?state=VA&company= . The contact people for these lenders are the banks' Director's of Renovation Lending and they can connect you with their 203k Lending specialist in your area.

And don't forget to use a Certified 203k Contractor for the estimating and the work. The Directory of Certified 203k Contractors is at http://203kContractors.com .

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PAUL WELDEN, PLLC
Phoenix Real Estate
Exclusive Buyer's Agent Realtor®

HomeSmart Realty
3131 E Camelback Rd #125 Phoenix, AZ 85016
Direct/Mobile 480.241.0081 | E-Fax 480.304.9134
http://CheapPhoenixHomes.com
Web Reference: http://203kContractors.com
1 vote Thank Flag Link Wed Nov 28, 2012
Your lender is not a fan because they probably do not do them so you need to find a lender that does. The FHA 203K and the Homestyle Renovation loans are great products but only with companies that do them on a regular basis. We have a full team for the FHA 203K and Homestyle Renovation loan. I would love to help but we only lend in Florida.

Thank you,
Melvin List
Licensed Mortgage Loan Originator, NMLS# 243087
American Mortgage Services CO NMLS# 259805
Cell: 813.629.5478
http://www.flbestrate.com
0 votes Thank Flag Link Thu Mar 26, 2015
Your lender may not like them because they are a lot of extra paperwork for the lender. Or maybe they don't even do the 203k loan at all. Regardless, I think if you find a competent 203k lender you will be well accommodated.

One thing that you may want to consider if the renovation costs are not major, is an FHA 203K streamline loan.

Or if the renovation costs are significant, then do a regular FHA 203K loan.

Good luck.
0 votes Thank Flag Link Tue Feb 17, 2015
There may be a couple of reasons your lender "isn't a fan" - one might be that the lender's company doesn't offer those, another might be that the lender hasn't had the training or experience to know how to do a 203K loan - it's definitely a great product - and if you're still looking i'm happy to help you find a lender who can get it done for you!

Thank You - hope your day is great!

Peggy Bouchard
RE/MAX Commonwealth
http://www.peggybouchard.com
804-307-4342
Peggy Bouchard, ABR, CRS, GRI, CDPE, SFR
Executive Club Award 2013,2012 RE/MAX Mid-Atlantic Region
Silver Level Production Richmond Assn. Realtors - 2013
0 votes Thank Flag Link Sat Feb 14, 2015
203k is a very good program however, getting it is not the easiest process. At times, the process can be lengthy.You have to team up with a great lender who is knowledgeable about it. A good team on your side shortens the closing time by weeks. Get help from the experts and be guided every step of the way.





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Dana Lindberg
CFS Mortgage - http://www.cfs203k.com
0 votes Thank Flag Link Fri Nov 1, 2013
So here is an old post, but might help. That's the only one I have every done. It wasn't great, but did get the job done. That client only had the min to put down. Now, if you can do a conventional renovation loan, I would recommend it. If not, stick to the 203K but find a lender that's comfortable with them. Do not use a lender that doesn't want to do one - it may not close and it won't be pleasurable for you.
0 votes Thank Flag Link Tue Nov 20, 2012
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