Home Buying in Miami>Question Details

Jose Vallada…, Home Buyer in Miami, FL

Is an FHA-203K a reality or myth ?

Asked by Jose Valladares, Miami, FL Tue Mar 13, 2012

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They are real - be sure to use a lender familiar with them. Good Luck!
2 votes Thank Flag Link Thu Mar 15, 2012
203K loans and 203K streamlines are real. Both are excellent loans especially for properties that need some TLC. The turn times on this loans are longer and the paperwork is more involved but worth it in my opinion.

All the best,

Fritz Walter
0 votes Thank Flag Link Wed Oct 16, 2013
To see if these loans are real for you - ask your mortgage pro to qualify you for one.
If you qualify - great, go for them, but ask for what issues you should anticipate down the road.
If you don't qualify - ask what you need to change in order to qualify - and plan ahead.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Wed Oct 16, 2013
It is very real and I have specialized in them for 21 years...I also teach a continuing education course in Florida that teaches Realors the program and how to use it to close more homes. My website is loaded with information about it http://www.titanhl.com if you would like to check it out.

Please contact me if I can be any assistance to you!

Andy Wood
0 votes Thank Flag Link Tue Oct 15, 2013
It's absolutely a reality. there is more paperwork involved and FHA has a list of approved upgrades and repairs as well. Think about it, the bank is investing in the home as well. If the home is in better condition and up to market value then they feel like they are making a good investment. They also want to be sure the home is salable if you default.

0 votes Thank Flag Link Sat Oct 12, 2013
Yes, it is real. 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 Sat Oct 12, 2013
Great answers...what about 203k-friendly contractors (Florida licensed and insured). Who can you recommend?
0 votes Thank Flag Link Tue Aug 6, 2013
Yes they are real I am an FHA 203k consultant, FHA compliance inspector and a 203K certified contractor.

0 votes Thank Flag Link Sun Mar 18, 2012
Hi Kevin, I use a mortgage broker that deals exclusively in 203k loans, both kinds, with or w/o the consultants. They are easy to do if you are using the right people. Like any loan they require paperwork and patience. Call me if you would like to have some help with this.
0 votes Thank Flag Link Fri Mar 16, 2012
It is a reality, but be sure to qet the right mortgage brroker to work with you.
0 votes Thank Flag Link Thu Mar 15, 2012
How do you find/know who the right mortgage broker is? What questions should I ask?
Flag Fri Feb 6, 2015
Yes, as said below, 203k loans are a reality.

There still seems to be a little confusion with some on the limits of an FHA 203k loan. I've just arranged financing for two clients' using the FHA 203k loan.

One was for a $257,000 purchase with $80,000 in repair costs, totaling a $349,000 loan amount.
The other was $109,000 purchase with $17,000 in repair costs added to the loan. This is referred to as an FHA 203k Streamline loan because of the lower repair amount, there are less requirements.

FHA 203k loans are a little more complicated than a regular mortgage loan in that the borrower &/or their contractor must provide all labor & material costs upfront, however they are well worth the extra paperwork. It's like having a trusted adviser (the lender) on your side to be sure you have everything planned AND priced appropriately.

Please feel free to contact me if you have any further questions, I'd be glad to help.

All the best,

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline loans (NO minimum credit score, NO appraisal required) Go Green rehab loans, HomePath, Investor Friendly (10 financed properties), VA, USDA, Jumbo, Conventional, plus, we allow Escrow HoldBacks!
0 votes Thank Flag Link Thu Mar 15, 2012
Yes and also there is the HomePath Renovation mortgage for properties owned by Fannie Mae. There are not many lenders that do the HomePath Reno but Regions Bank does. One of my clients ended up with Instant Equity and had a model perfect home after the contractor did all of the work.
0 votes Thank Flag Link Thu Mar 15, 2012
It is a reality, but it is not as simple or as cheap as anyone makes it sound. I very high number of homes in my area would qualify for the program but rarely is it used, there are reasons for that discrepancy. Do your homework before taking the leap, good luck,
0 votes Thank Flag Link Wed Mar 14, 2012
Most of time when we talk about about a 203k as Realtors® we meen the 203k Streamline that will allow up to 35,000.00 in repairs. I have a couple of lendersthat will do that loan. As for the full blown 203k where you need the 203k consultant and large amounts of work on a property I have one lender about 100 miles away from me that used to do them. I have not talked to them in a while becuase 35,000.00 (less 10% for unexpected repairs) fixes a lot of problems.
0 votes Thank Flag Link Wed Mar 14, 2012
203K loans really do exisit, however many lenders choose not to offer them as they require a lot more service than most loans do and come with a detailed list of rules and regualtions.

Many buyers falsely resume that they can get one of these loans and then do the work themselves which isn't true., The work must be done by approved contractors/tradesmen who are on the FHA list in your area. You may be permitted to do some of the work if yo are a licensed contractor or can provide evidence of ample experience to satisfy their requirements.

I am only aware of a couple of lenders in my area who offer these loans, and I don't know your area so I can't reccomend anyone to you. but you could always check out the FHA website and perhaps pull down a list of lenders in your area who offer this loan product.

Good Luck
0 votes Thank Flag Link Wed Mar 14, 2012
203k absolutely real! With todays mortgage rates its a great way to buy a house. You can get into a home that needs a little work and srill qualify for an FHA loan with only 3.5% down payment.

There are more details but its not really a big deal if you are working with professionals, it can all go very smooth a simple.

Have fun buying your new home! Jim
0 votes Thank Flag Link Wed Mar 14, 2012
203ks are a fabulous way for people that are not fortunate enough to have cash, to be able to buy a distressed property. There are 2 different loans, one that can go up to $30k where you as the homeowner can hire up to 3 contractors to complete the work. The other loan can go up to the FHA cap in Miami-Dade, or $423,750, which includes the price of the house and the repairs. This loan must be orchestrated by a general contractor. It sounds difficult but it isn't. Imagine that you could have your dream house with new bathrooms, kitchens, etc just the way that you want them. Call me to find out more, Christine Knize, Broker, Palladio Realty 305-505-2282
0 votes Thank Flag Link Wed Mar 14, 2012

It is real, It is possible? in most of the cases it is a complicate transaction.
You need a contractor.
A good Realtor.
Selling agent and seller willing to accepted a 203K
Repairs not to exceed 30K
Subject to appraisal and tons of other regulation.

For an FHA buyer's you must contact an agent and work with She/he.

Carlos Escamilla
Realty World Executive Homes.

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0 votes Thank Flag Link Tue Mar 13, 2012
It is a reality.
probably one of the best things that some buyers have going for them right now.

why do you word your question this way?
just skeptical?
0 votes Thank Flag Link Tue Mar 13, 2012
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