Is it possible to get pre-approved for a 203k mortgage? (Question for Andrew Adams)

Asked by Bluesky, Boston, MA Wed Nov 24, 2010

A two-family has been on the market for about 90 days. It's in a very good greater Boston location, price is significantly below market value. Essentially it's been in the same family and the interior hasn't been touched in decades. Exterior is in excellent shape. Biggest issue is that the two furnaces need to be replaced and the electrical needs to be seriously upgraded. Bathrooms and kitchens are very basic but liveable in the short term. My question is if you go for a 203k loan, can you get pre-approved for that? Does it take so much time that one could lose the window of opportunity to present an offer? Is the seller likely to not want to sell to someone with this kind of mortgage? Is it more advantageous than a regular FHA loan? The downpayment is "gift" money so I understand FHA is the only way to go until the money gets transferred.

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Andrew Adams, , 01915
Wed Nov 24, 2010
If the property is in need of repair the seller will need to be open to 203K financing and truthfully it is better than a regular FHA offer. Any property issues that would be identified in the FHA appraisal will be part of the repairs that will be done after closing.

You may also Qualify for the MHFA purchase and rehab loan with gift funds as your down payment.

It takes no longer to get pre-approved for a 203K loan than it does for a non 203K loan.
1 vote
..., , Lexington, MA
Thu Dec 9, 2010
Hi Bluesky

Andrew summed it up nicely. No need to worry about how much time the preappoval takes - it can be quick if you are willing to provide the information needed.

0 votes
Heidi Zizza, Agent, Framingham, MA
Fri Nov 26, 2010
I have had a client work with Andrew on a 203K and it went very smoothly! He knows this type of financing like no one else!
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0 votes
Andrew Adams, , 01915
Wed Nov 24, 2010
JM...I would like to challenge your next client to a K off. Have them call Rick and then have them call me at 978-720-5632 and see who they choose to work with. I would be shocked if Rick has as much Renovation experience as I do, or access to as many renovation loans as I do.

I offer:

FHA 203K
FHA 203K Streamline
MHFA Purchase and Rehab
Fannie Mae Homestyle
Fannie Mae Homepath Renovation (only 4 lenders in MA originate them and Salem five is the only lender headquartered in MA that offers them)
We will also offer renovation loans through our Construction to perm portfolio products.

I have been in Renovation Lending for close to 20 years and before joining Salem Five was an Area Builder Sales Manager for Wells Fargo. I would place my renovation experience against any loan officer in the Country let alone Massachusetts.
0 votes
J.M.Jones -…, , Massachusetts
Wed Nov 24, 2010
They only thing that is of concern is the value of the property - if it passes a FHA inspection etc.
The furnaces will be your issue in my opinion, you can pick up two new trio boiler units from F.W. Webb for around 4-5k with burners. the electric is not new but functional so I see no issues but that and what your credit may require, there are loans designed for the exact purpose of a rehab as well so be aware of those opportunites as well - Do this... call New Fed Mortgage at 781-704-1300 ask for Rick - he is a great guy who knows all the ins and out of these programs - he is your best bet in my opinion.
Good Luck and if you need anything at all, call me at 978-335-9092 I will do my best to help.
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