Has the 203K Rehab loan gone away?

Asked by Amy Stabolito, Thornton, CO Sun Jun 29, 2008

I was told these loans no longer exist. Can anyone confirm? I have FHA buyer's who will need extra money to replace the roof, water heater, carpet, and plumbing. It's a bank owned property so of course it's sold AS IS. Any advise?

Help the community by answering this question:

+ web reference
Web reference:

Answers

11
Constantine…, , San Diego, CA
Fri Jan 28, 2011
FHA 203K loans are available and well worth the added effort.
Call me anytime to get started.
(858)-848-LOAN (5626)
Thanks!
Web Reference:  http://www.e-approval.com
1 vote
Rudy McDowell, Mortgage Broker Or Lender, Bloomfield Hills, MI
Tue Oct 18, 2011
Hi, AMy. Short answer: No. But fewer lenders are now doing them and the process itself has gotten more convoluted, time consuming, and costly for perspective buyers.
0 votes
Garyfulg, Home Buyer, Santa Rosa, CA
Mon Oct 17, 2011
The question was asked "Have 203K loans gone away". This issue has been piloting around real estate agents here in Sonoma County for about a week now. It has been said that last week B of A stopped doing 203K loans. I talked to my loan agent and he called his B of A guy who said he has not heard that BUT theFHA "buyers assistance" program will be no more as of Oct. 30th, 2011.

I think this is where the confusion is coming into play. Can any of the loan agents replying on this blog confirm this for me?

My approved 203K loan is with retail and not wholesale with B of A.

Gary
0 votes
Deborah Garv…, Mortgage Broker Or Lender, San Diego, CA
Mon Oct 17, 2011
I recognize this is a old question, but anytime there is a opportunity to tout the benefits of the 203K program I am going to take it. I agree with George that there is so much misinformation swirling around any aspect of financing that most of the finance peeps on trulia and related sites spend all of time dispelling myths generated by non-finance "experts".

Not only is the 203K alive and well; I believe it has the potential to completely transform our industry. I am working on the development of a workshop that will be presented to consumers and agents alike all over CA to educate and inspire how using the 203K can literally allow a consumer to modify a property to their specific criteria. I expect the 203K will be a large part of my business in 2012. I encourage all agents to learn about it and embrace the product fully.
0 votes
George Raymo…, Mortgage Broker Or Lender, Fort Worth, TX
Mon Oct 17, 2011
This is an example of what drives me crazy about this business. There's a lot of misinformation out there and it's sad to know there are buyers who just might believe it. The 203K and particularly the 203KS (Streamline) is an awesome way to purchase/ rehab a home or even refinance and do much needed repairs. With the 203 Streamline, it has taken all the ugly, time consuming, nightmarish red tape out of the transaction. So much so, the average 203KS can be closed within a 35-45 day escrow period quite easily (if you find the right LO).

Best of Luck!
0 votes
Garyfulg, Home Buyer, Santa Rosa, CA
Thu Oct 13, 2011
For those of you said said they are still doing the 203K loans. This is what I was told by an agent today.

I have an approved 203K loan but it was approved 5 weeks ago. I just spoke to an agent that I had a backup offer on a property (approx $12,000 worth of work). I saw that the property was active again so I called him. He told me the reason the buyers backed out was because B of A is not doing them anymore and cancelled his loan. He didn't contact my agent about the backup offer because it is also a 203K. He also said that he heard that many lenders are following suit.

I also have an offer (I just made this offer this week) on another home that is a short sale that is about a month away from a decision being made. My offer is $25,000 higher than the other. I am not fearful that I will not get a home if 203K goes away.

Gary
0 votes
Lyle Wolf, Agent, Morristown, NJ
Fri Jan 28, 2011
Amy
FHA 203k loans are alive and well, but not all mortgage companies offer the program.
0 votes
Lori, , Orange County, CA
Fri Aug 29, 2008
Anyone that is interested in doing a 203 k , please call me. Yes their are lenders that do them however; very few and are very difficult to find. Wells Fargo is no longer doing these types of loans since 2006. I find this strange since the Foreclosure market...a lot of borrowers wanting to buy homes that have been gutted from a mad homeowner that retaliating on their lender for not negotiating terms with them..or, a homeowner that did home imporvements and ran out of money, a builder that ran out funds...etc......I've been in the Mortgage Industry 28 years. I have processing and underwriting background. If you want to call an experienced Loan Officer then call me...I can help you with the process from start through finish. 949 291 5779 or e mail me kellett2008@yahoo.com
0 votes
AJ Heidmann, Agent, Arlington, VA
Fri Jul 25, 2008
Amy,

The preceding answers give you a good idea that the 203k loan is still available. However, the number of lender that do them seems to have been reduced pretty significantly. A recent client that wanted the program had problems finding a lender. I see that Douglas said that Wells Fargo was still doing them, but I have heard that they closed down that department... so checking directly with Wells Fargo may be in order.

Good luck and be sure to update us with how your client fairs in their search.
0 votes
Alex Mukai, Home Buyer, Laguna Hills, CA
Fri Jul 25, 2008
Hi ,
The FHA 203k loan has never gone away, I know because i have originated over 200 of these loans since 1974. I am still originating them and if you want more information you can call me at 800-686-8242. I am also giving a FHA 203k presentation at the Orange County Association of Realtors on the FHA 203k program on August 27th. FHA 203k Specialist and senior loan officer-Alex Mukai
0 votes
James Gordon…, Agent, Hamilton, OH
Mon Jun 30, 2008
The 203k program is alive and well. You may have a problem finding a lender that offers it. My clients had to get an 203k consultant to drive 80 miles one way to do the overview on their initial estimate review. For what your clients need it looks like the Streamline 203k would work. A lot less paperwork but the amount of repairs need to be 35,000 or less.
Web Reference:  http://www.Find1Home.com
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more