I believe that Bank of America is taking over servicing of FHA loans and they may offer 203k's. Good luck.

Have you considered buying a HUD home?

They have a $100 down program and great deals on homes.

Adriane,

I wish you the best. One more thing. There are other down payment assistance programs available, so if things go awry with this one, visit the blog below for information on the others.

Thanks for the new tips. Unfortunately, we are doing NSP because we don't have a down payment. We feel like we are the ideal family for this program, with good credit scores, decent incomes, but no down payment. I don't understand why so many lenders are making it impossible to use the program. We do have the funds reserved though, so even though we know the program is out of funds now, we still have ours. Unless some other down payment assistance program comes along, it will be a few years before we can buy a home. Boo.

Solomon, I'm not sure we could do 60 days. We put this house under contract at the end of May, and this last extension, the bank asked us to pay a pretty hefty fee. We can't afford to maintain this for 15 day extensions over and over. It is my understanding that at this point, only Brand Mortgage and Mortgage Counseling Services will fund a 203K along with Neighborhood Stabilization Program. We are hoping that if we can hold out a few more days, another lender will also step in. But I will pass your information on to my agent. I really appreciate your offer to help.

Adriane, you might want to check out this blog: http://www.trulia.com/blog/quint_robinson/2009/08/closing_1s…

Adriane,

One of my clients endured an identical situation. What's more? She works for BOA! We wound up abandoning NSP completely and went with a 203(K) loan through BOA. Please ask your agent to PM me and we can share notes. I have other lenders that may be able to help, but all will require a minimum of 60 days. A few of my clients closed on transactions using NSP, but none used it toward repairs. Oddly enough, this client started by using TBW.

Adriane,

In my opinion you should ditch the NSP program.

I don't know a lender out there that has closed one of these loans. Sure I've "heard" that some are closing, but most of my lenders won't touch these deals.

The issue is that the lender fronts the grant money then gets reimbursed once everything is complete. Lenders are not comfortable with this arrangement so there is a lot of red tape and most of the time these deals are not easily approved by the lenders underwriter.

I wish you the best of luck, but in my opinion you are in for a difficult battle to get this through to completion.

Your welcome, anytime you have a question, you know where to find us.

Thanks for the tips, especially from David. Our agent is doing a great job helping us find solutions, but since this is such a bizarre (and frustrating) situation, I thought I would see if anyone else had any tips. Unfortunately, Wells Fargo does not work with NSP. We literally have two choices for the 203K loan and NSP; according to the DCA website. We have filed an extension. It's our third. The home is being sold by BOA. We have about $20,000 in repairs lined up. It's possible that they would cover a small portion of repairs, but not much.

Welcome to the real estate world after "Fraud, Flipping and Foreclosure".....

Repair type loans like you mention are fast disappearing - as Adrian said, file an extension and try Wells Fargo - I know a rep if you need one.

Hank

Ask your agent to submit an Extension of Time Addendum and resubmit the loan. Try Wells Fargo and PMAC. Both of these lenders do 203K loans.

http://www.pmac.com

Best of Luck,

What does your Realtor say?

You can call me if you are still up, 727-239-2188, I cant do your loan but I am knowledgable about the process and might have some tips.

Who is selling the home?

A homeowner?

A bank?

How much are the repairs?

would they be able to take care of the repairs? you never know till you ask.

If the home has been on the market for a while you might be able to come to terms with the seller.

So, have you contacted all of the lenders on this sheet: http://www.dca.ga.gov/housing/Homeownership/programs/downloa…

Yeah, the problem is that our broker has been cut out of the situation now. Apparently none of the lenders will allow brokers anymore (with NSP). But only two of the current NSP lenders allow 203K loans, and they are charging a really really high interest rate compared to TBW. TBW was just charging the usual FHA rate. Is it typical for 203K loans to require such a high interest rate?

You need to contact a local mortgage broker, we know the turn times at the banks, your FHA# needs to be transfered and your contract will most likely need to be extended. Turn times are the key, if your broker doesn't know them the their processor will. GET MOVING, get an application in in the AM.