Meghan, There isn't any penalties attached to puting a lower down payment. Maybe you are referring to better pricing on your interest rate (that is true, it could be a .25 to .5 better in discount points charged for a bigger down payment). The down payment on a 203k is based on the repairs and the purchase price. Your example would be $23K as the down Payment. Please reference my Web reference, it's take you to my blog about the 203k loan. It is a comprehensive video of 203k loans. The most viewed on YouTube. Good Luck! Mario... more
Good news, I just went through this for the 3rd time so I have your answer! Chances are there is not a HUD tag (be sure to check all closets, kitchen cupboards, and beneath the sinks).
In each case, we had to go through the DMV (department of motor vehicles), and believe it or not the police department was able to help with information needed to refinance and/or sell. I believe you are trying to establish ownership, and in most states these homes are considered vehicles so they are registered with the appropriate department.
This might sound strange, but it is what was necessary. They treat your home the same as a vehicle. Hopefully this works well for you, when we tried getting a title company to help it was of little use.... more
I assume you are going to hire the services of a professional home inspector before making any kind of real estate purchase. If so, great! I think you're making the right move. He/she will help determine if your electrical issues are considered a safety concern. As mentioned already in some of the answers, safety is one of the required repair items/issues under the 203K Program and they're required to be repaired by a licensed contractor.
You, as the buyer, will not be allowed to repair the electrical issues unless you can prove to the lender and their underwriting department that you are qualified to make the repairs (example: you are a licensed electrician), and...you'll want to be sure your lender will allow "self help". Not all lenders allow the buyer to work on the rehab. Check with your lender of choice.
Brian, I am sorry to hear about all those appraisal costs. Hopefully, if you decide to go FHA you can use the old appraisal again with little modification. Many banks want to order their own appraisal (I can't say I blame them) because of the possibility of fraud.
I didn't realize that in your quetion that had already mentioned the streamline (I missed that s even though you capitalized it), but I think it is an excellent program for your needs. It shouldn't take as long as a USDA loan takes.
The only issue you might have with the streamline is that you have to be able to move in to the home within 30 days of closing.
If your current lender has experience with it you can ask hem how long it generally takes him. I can't imagine it would take more than 45 days. A USDA will likely end up taking 60 or more days.
Hope this helps but feel free to post more info or questions.... more