Questions about 203k loans

Asked by Enjeri Thomas, Boston, MA Wed Nov 10, 2010

I have a home and will need a 203k loan to repair it. If the home asking price is 100,000 and I get it for 50,000, and the 203k loan is for 100,000 what will be my cost at the closing.
Is my closing on the buying price(50000) or the total of the loan(150000)?

Help the community by answering this question:

+ web reference
Web reference:

Answers

7
Jeffrey Manc…, , Boston, MA
Wed Nov 10, 2010
It will be on the combined total of 150,000. I can be reached at 508-989-4295 or via email for a quote, we are a direct lender.
1 vote
Enjeri Thomas, Home Buyer, Boston, MA
Thu Nov 11, 2010
Thanks everyone for your help the numbers that i gave were fake numbers.... If I find a home in boston for 50000 I will let you know ... lol
0 votes
..., , Lexington, MA
Thu Nov 11, 2010
Hi Enjeri!

It sounds like you already have a mortgage broker involved if you're saying that the loan is for $100,000. Your broker should clarify this for you. Andrew and the others pretty much answered your question but I'm confused how you got to $150,000. Are you doing $50,000 in renovations or $100,000? Your loan can't be for unlimited renovations - you can only get just a bit over what the home will be worth after renovation.

Tom
thomas.stevens@flagstar.com
0 votes
Heidi Zizza, Agent, Framingham, MA
Thu Nov 11, 2010
I am not a mortgage broker however I have recently had a client get a 203K with Andrew Adams at Salem 5. It went very smoothly and he was very qualified. Good Luck!
0 votes
, ,
Thu Nov 11, 2010
It will be based on the total loan amount which is purchase price + what you are borowing for renovations + reserve fund and other mis. closing costs. I would recommend speaking to a lender about the various stages in the 203k loan process as there is a lot of paperwork and different steps involved.
0 votes
, ,
Thu Nov 11, 2010
Enjeri. You closing costs will be based on the entire loan amount.
0 votes
Andrew Adams, , 01915
Wed Nov 10, 2010
Couple things. I don't see how you will purchase a property that is listed for $100,000 for just $50,000. That seems a bit optimistic..Are you planning on $50,000 or $100,000 in renovation. You will have contingency reserve in addition to the cost of repairs so your down payment will be based on $105,000 or $160,000+ depending on the cost of repairs. I would be leaning to the + side, the reserve will likely need to be 15-20% rather than the standard 10%.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more