General Area in Woburn>Question Details

Andrew Adams,  in 01915

Realtor Feed back on FHA 203k Loans.

Asked by Andrew Adams, 01915 Mon Feb 8, 2010

I have been on the lending side of real estate for more than 16 years and have always been drawn to renovation and new construction financing. With the change in the market the 203K loan has come back in a big way and I am amazed that more realtors don't aggressively market some of their listings with renovation financing.

My experience is that most realtors have had bad experiences with the 203K loans or have simply heard not so good things about the program. I am preparing a 203K seminar for realtors and consumers alike and would like some Real Estate agents feed back on the program. I can obviously ask the realtors I have done 203K loans with but that will only give me their take on 203K loan that I have been involved with. I really am looking for general perceptions of the program and selling listings that have this type of financing. Thanks in advance for your feed back.

Help the community by answering this question:

Answers

8
Me too Andrew! I look forward to working together again.
Heidi
0 votes Thank Flag Link Mon Feb 8, 2010
Thanks for the props Heidi...What Jeff is describing does not suprise me an pretty much what I expect the feedback to be. It shouldn't be that way but unfortunately it is the reality o fthe program...I think my tag line should be "A lot of loan officers have access to the FHA 203K loan...but only a handful really know how to originate a 203K loan!"

I was looking forward to meeting you at the closing but our ships passed. Looking forward to meeting at the next seminar.
0 votes Thank Flag Link Mon Feb 8, 2010
Jeffrey I just did one with Andrew coincidentally. It closed on time and my buyers equity at the end will be more than 10K. It was a very easy process, very little snafus, maybe it was the lender you were working with. They need to be adept at this program. Maybe you should try the seminar and see if you can learn something different. Hope to see you there.
Heidi
Web Reference: http://www.mdmrealtyinc.com
0 votes Thank Flag Link Mon Feb 8, 2010
Jeffery,

That makes no sense to me. The 203 K loan program allows for 110% of the appraised value. the reduction of work included would need to be done if the borrower didn't qualify for the loan. I closed 5 of these loans in January and all but one generated $10K plus in instant equity.

If the property was sold at a fair market value and the borrowers did not try and over improve the property, what you experienced should not have happened. I wrote a blog on Zillow that not all loan officers are created equal. I think this may have been the case.
0 votes Thank Flag Link Mon Feb 8, 2010
I just completed a 203k deal in Peabody. It was the worst experience I've ever had. I had the deal UAG in August and it closed Jan 2. I just represented the seller so I wasn't fully involved on what the buyer was doing on her end of things. Part of the problem was that the house cam in undervalued, so we had to take some "repair" items out of the loan and revalue the deal. I honestly couldn't recommend a program based on that experience. Has anybody had a good experience? Closing in 2 months?
0 votes Thank Flag Link Mon Feb 8, 2010
They are becoming popular. There are many hud homes for sale that qualify for this program.
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Mon Feb 8, 2010
I am in the early stages of refining the seminar that I have done in the past and am trying to update it with current infomration that is relevant to today's market. As you know I love these loans and want to get the word out. I will let you know when I schedule the next seminar.
0 votes Thank Flag Link Mon Feb 8, 2010
I would love to come Andrew. When is it? can you email me the pertinent information?
Thanks
Heidi
Web Reference: http://www.mdmrealtyinc.com
0 votes Thank Flag Link Mon Feb 8, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer