Home Buying in 77033>Question Details

niveklandy, Home Buyer in Houston, TX

Can you get down payment assistance with a FHA 203K loan?

Asked by niveklandy, Houston, TX Thu Jul 18, 2013

I have been pre-approved for the loan. The offer has been accepted; however, my mortgage company says that I need almost $6,500 to close on a $55K Loan
This is way more than I ever expected. I am beginning that something does not add up.
Any experienced advice would help greatly.

Help the community by answering this question:

Answers

7
Without knowing your actual taxes and insurance, my estimator comes out in that range. 203k loans do have extra fees which are typically rolled into your loan. Does that $55,000 loan amount include your remodeling amount?

Barbara Coker
NMLS#228545
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas!
1 vote Thank Flag Link Thu Jul 18, 2013
Barbara, yes the $55K includes the remodeling amount.
Flag Thu Jul 18, 2013
203k is a very good program however, getting it is not the easiest process. You have to team up with a great lender who is knowledgeable about it.

For more details about 203k loan, visit http://www.cfs203k.com. CFS Mortgage and RenovationReady brings together more than 50 years of traditional and renovation lending know-how. Let their team of experts help you.
0 votes Thank Flag Link Sun Oct 13, 2013
In addition to an origination fee, appraisal, and prepaids, you should expect something for underwriting/processing, attorneys, title settlement, lender's endorsements, survey, and recording, just to name a few. Also, just because you have been prequalified, that doesn't mean you have actually made the formal "application" which then requires the actual GFE. So if you aren't comfortable with the amount at closing, cut your losses now. Save yourself the expenses of the inspections and appraisal. 203(k) loans are challenging, to say the least.

Good luck!
Barbara Coker
NMLS#228545
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas
0 votes Thank Flag Link Thu Jul 18, 2013
I generally advise my buyers to figure on about 8% of the selling price to close an FHA-insured transaction, to cover all prepaids including the down payment. Given that this is a 203K loan, and additional fees are required, the number doesn't seem out of line. Your lender should have provided a GFE almost immediately after the contract was executed.

I don't know of any down payment assistance at the moment, especially for rehab loans. If there were any funds available, you'd be jumping through hoops trying to satisfy the dozens of requirements ranging from income to location of the property.

If you can't come up with the money and are still in the option period, you can use your unrestricted right to terminate the contract. I wish you well.

Al Geffon
(713) 213-6350
al@geffon.net
Web Reference: http://www.har.com/algeffon
0 votes Thank Flag Link Thu Jul 18, 2013
There are programs for down payment assistance; you would have to check with your lender to see if the FHA 203K would work with them. You would also need to research the available programs and find out if you qualify for them. There are often restrictions on income, location of the home, length of ownership of the home being purchased, etc. If you are still in option period on the current contract you will want to act quickly. Anticipate a lengthy process to apply for and receive any down payment assistance you may be eligible for. I would assume if you were to incorporate down payment assistance into funding on the current contract you will need to amend the contract giving you sufficient time to ensure the funding. If you are working with a realtor they should be able to assist you with your questions and help you come up with a game plan. If you do not have a realtor representing you, I advise you to employ one. Buyer's representation costs you nothing but can save you money and frustration as you navigate the real estate market. I have included some websites below that should give you a good starting point for your research. Good Luck!

http://www.har.com/affordablehousing/

http://www.tdhca.state.tx.us/homeownership/fthb/down-payment…

http://www.houstontx.gov/housing/resource.html
0 votes Thank Flag Link Thu Jul 18, 2013
Elisa,

Thank you for your reply. No GFE was provided. And yes closing costs are included. However, I was wondering if there were down payment assistance?
0 votes Thank Flag Link Thu Jul 18, 2013
Does that money include your down payment as well as closing costs involved for the loan? Did your lender provide a GFE (Good Faith Estimate) when you applied for your loan?
Check out the link I provided, read all about it so you know what you are getting into and the costs involved.
0 votes Thank Flag Link Thu Jul 18, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Home > Texas > Harris County > Houston > 77033 > Home Buying in 77033 > Question
Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer