HELP! I recently came across a home for sale that I liked, I called the listing agent who told me it was bank owned and needs a lot of work. After

Asked by Des, Atlanta, GA Mon Mar 29, 2010

viewing the property, checking websites, and speaking to a mortgage broker I came to the conclusion that I will need a 203k loan. I currently do not have a realtor nor a lender. But I do know I have good credit and some down payment. What I would like to know is what are the first steps to take in this situation? 203k loans seem very confusing and there doesn't seem to be a lot of people who know very much about them. How can I make a bid on a property without knowing how much work it needs? And who determines what exactly needs to be renovated? Also, how would the $8000 tax credit play into this? I hear Wells Fargo has a good division working with 203k loans, but when I spoke with someone from their office, he didn't seem to have much knowledge. Any information would be appreciated, and thanks in advance!

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Jason Fritz, , Marietta, GA
Thu Jun 3, 2010
Hi Des, My name is Jason Fritz. I am a licensed General Contractor and HUD 203k Consultant in Georgia. We have completed hundreds of 203k projects and offer very competetitive pricing as well as excellent customer service and overall project satisfaction. I would love the opprotunity to discuss your project with you.
You can visit our websites at or
or call me directly at 678-873-5260.
Thanks, and Good Luck.
Jason Fritz
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Chris Colvin, Other Pro, Marietta, GA
Mon May 3, 2010
It is very important to call a 203(k) Consultant as early as possible - to open this channel. I handle a LOT of 203(k) Consults, and work with some of the best lenders in this program - and Wells is one of them - try Patrick Quinn at Make sure the lender you choose has actually closed these loans before, because that is KEY to seeing the closing table. The full 203k, not streamline, is the best option - it is a monitored loan program, and protects you from the contractor at every step.
We offer an FHA home inspection that knocks out the Streamline requirement, and if you go Full-K, it rolls into the FHA package seamlessly- without additional cost.
Chris Colvin
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Lee Taylor, Agent, Decatur, GA
Wed Apr 7, 2010

How are things progressing?

You need a strong agent and a strong lender on your team, and even if this opportunity is already under contract with another buyer, you should have a much stronger negotiating stance at your next opportunity because you built a team and did your homework up front.

The good ones go quickly, and you had to scramble when opportunity knocked - so, are you ready now? If so, did you make an offer on that property?

If not, then time is of the essence with the tax credit deadline looming...
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Stacy Carter, Agent, Roswell, GA
Mon Mar 29, 2010
I offer both real estate and renovation services. We are a state licensed contractor and are 203K Streamline approved with several lenders. Incidentally, there are other renovation loan options other than 203K so keep that in mind.

Feel free to contact me to discuss the process in more detail. There is some extra paperwork involved, but we can help you navigate it.

There are great opportunities and we can help turn yours into a real gem!

Stacy Carter
Home Appreciators Real Estate & Renovations at
Better Homes & Gardens Metro Brokers
0 votes
Patty Perry, Agent, Port Orange, FL
Mon Mar 29, 2010
Hey Des,
Yes, this can be an overwhelming process. I work with some excellent lenders that can help you with the 203K loan and walk you throught the entire procees. You also need a good Agent representing you on the purchase side to protect you - no cost to you. Feel free to contact me. I work this area and can handle the details for you so that the purchase is stress free.

Patty Perry
Keller Williams Realty
Cell: 404-805-8853
Web Reference:
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Nest Atlanta…, Agent, Atlanta, GA
Mon Mar 29, 2010
Hi Des,

The FHA 203K Streamline loan is a fantastic option! I've worked with several buyers who used it and it was a great success. If you are seriously considering making an offer, I would recommend one of the following scenarios:

1) Hire an inspector or contractor to inspect the home and give you an estimate. Based on the estimate, submit your offer on the property. It sounds simple, but the downside with this option is that you may pay for a home inspection and then end up losing the home to another buyer

2) Have your agent assess the comparables in the area, submit your offer on the home, negotiate the lowest price possible and then, during the Due Diligence Period, you can get the home inspected. If you don't like what you see (or if the renovation costs are too much), you can either re-negotiate the price of the homr or terminate the contract without penalty.

As this is a bit more complicated than a normal transaction, please make sure you have an agent representing you!

Also, I have two loan officers who handle the 203k loans and do a great job explaining the program. Please let me know if you would like their contact information.

All the best,
Web Reference:
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Joseph Domino, Agent, Scottsdale, AZ
Mon Mar 29, 2010
You definitely need some help and you need partners who are on your side. You can choose any lender you like. If you currently have a bank that you work with you might want to contact them to get started.

You should shop 2 or 3 lenders just to compare fees (and also you will get a better feel for your comfort level) with each one.

Also find yourself a local REALTOR who will help you research the property and help you determine the true value of the home. The Listing Agent may be very honest, but having your own agent will provide you with someone who is looking out for your best interest. Your agent may also have contractors that can give you estimates for the repairs. 203K loans require licensed contractors, but some contractors specialize in 203K rehabs so they might be a better choice.

Once you determine the value of the house you can go forward. Sometimes the difference between a "fixer upper" and a "move in ready" is not that different after all is said and done. So make sure you are getting a good deal.
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Michael Hamm…, Agent, Suwanee, GA
Mon Mar 29, 2010
Put simply, Des, a 203(k) loan is a program for the rehabilitation and repair of single family properties-link below. The first, best step is to contact a mortgage lender who can tell you where you are financially in terms of being able to make an offer. The FHA guidelines got stricter last quarter and mortgage qualification standards seem to changing almost weekly. Please consider calling one or both of our preferred lenders below and starting a dialogue as to what you need to get your deal done. If you have any questions for me on a home, please call or email and I will be glad to share my thoughts with you. Good Luck!

Michael Hammond

Jay Posey
Your Mortgage Advisor
PHH Mortgage, Inc
Phone: 404-992-5462

Chuck Ewing
Senior Mortgage Planner
Community Mortgage Services
Phone: 770-241-1700
Fax: 678-623-0960
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