Home Buying in Bushwick>Question Details

Taniaak05, Home Buyer in Brooklyn, NY

is it hard to get a 203k loan?

Asked by Taniaak05, Brooklyn, NY Sat Jan 26, 2013

This question was asked from this property: http://www.trulia.com/property/3106983623-181A-Schaefer-St-B…

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Good morning Taniaak05,

In my 23 year career as a Mortgage Banker, I've had the pleasure to close many 203k loans. My answer to your question is twofold.

First, the lending environment for 203k loans is much tighter today than it used to be. There are far fewer Lenders offering this program, and, when they do, they may have more stringent guidelines for obtaining an approval than even the FHA Underwriting Guidelines suggest.

Second, and once you've identified a Lender for your 203k loan, the key to success with this program is the paperwork. Your Licensed Contractor must prepare accurate, legible, and professional estimates. I can't tell you how often I am presented with sloppy paperwork by the Contractors. Be sure your Contractor knows she has to be on-point an professional in her presentation of her work estimates. Your Loan Officer at the Lender needs to be VERY experienced with the program. When interviewing Loan Officers you should ask if he can complete the 203k Worksheet manually, without the aid of a computer. The basic knowledge required to do so is key to your success in working with the Loan Officer. If she doesn't know how to complete the form without the aid of the computer, move on. Intimate knowledge of THAT form, proves the experience level. And that experience is KEY in moving your loan application through the system efficiently.

There are two types of FHA 203k Loans: Regular 203k or "Full" 203k and Streamline 203k. The Streamline 203k program limits the repair costs to $35,000 and does not allow for structural changes/repairs to the property. The regular 203k program can be used to complete a full "gut-renovation" of a home.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services

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2 votes Thank Flag Link Mon Jan 28, 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. A good team on your side shortens the closing time by weeks.

Dana Lindberg
CFS Mortgage - http://www.cfs203k.com
0 votes Thank Flag Link Sat Oct 19, 2013
From my experience with 203k loans, the best advice is to use a lender that offers assistance via third party with 203k processing.
This shortens the closing time by weeks. Try http://www.cfs-mortgage.com/203k for more information.
0 votes Thank Flag Link Fri May 24, 2013
Hello Taniaak05,

No it's not particular harder than the standard FHA loan; however you will have to qualify. 203Ks are not offered by all lenders. Some lenders may have a tighter debt to income ration for this product, meaning the percentage of your debt in relation to your income and the home you purpose to buy.

Hope that helps.

Janet Nation, CBR
Sailing Home Realty
Direct: 646-321-9649
Office: 516-377-4760
Licensed Real Estate Salesperson
0 votes Thank Flag Link Sun Jan 27, 2013
Your loan officer can accurately answer your question, therefore for a personalized answer consult with him/her; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Sat Jan 26, 2013
A 203k loan is a viable option to when purchasing a home that requires extensive work. It allows the buyer to borrow funds to make repairs. But the bank will only release those funds in increments as the work progresses and the bank needs to see the written rebuild plan in advance from a professional contractor. So it is not "easy". Nothing worth the effort ever is!

Good luck!
0 votes Thank Flag Link Sat Jan 26, 2013
I offer 203K loans. I would be happy to discuss your loan scenario. I am available 7 days a week at 800 315 8803.

Bart Gabe


800 315 8803

NMLS# 20743 - my licensing information

http://www.nmlsconsumeraccess.org/ - link to look up my license number
0 votes Thank Flag Link Sat Jan 26, 2013
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