I have found a short sale property and I am going through the process of a 203K renovation loan. I was hoping it would be 20k in renovation but a

Asked by Sheila23, 20910 Mon Sep 14, 2009

HUD consultant/home inspector estimated 37K. The 203k loan is becoming stressful because contractors don't want to work with it. It is hard to get people to come out and do estimates because I am not the owner. I have good credit. (score in the mid to high 700s) Should I get a personal loan instead to fix up the home? It needs carpet, paint, new fence, possible amp replacement but mostly cosmetic.

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Your Solar R…, Agent, Silver Spring, MD
Mon Feb 4, 2013
You can get a conventional 203k product. Leonard Campbell of wells fargo in Columbia MD is the manger and an expert with 203ks
0 votes
Miekeba Jones, Agent, Silver Spring, MD
Tue Jan 15, 2013
Hi Sheila23! Did you complete your deal? I'm closing a 203K loan in a couple of weeks. The contractor is not picky about the jobs he takes. Contact me for his information.
0 votes
Your Solar R…, Agent, Silver Spring, MD
Tue Jan 8, 2013
I found a lender with in-house Underwriting. They can get a 203k done in 30 DAYS

HOMESTEAD FUNDING CORP
301-928-8739
http://www.homesteadfunding.com
Contact: Darlene Haeger
dhaeger@homesteadfunding.com
0 votes
Your Solar R…, Agent, Silver Spring, MD
Sat Jan 5, 2013
Hi, Sheila. I would also call Leonard Campbell of Wells Fargo Renovation Loans for his opinion. He is the branch manager. They have a conforming renovation program that allows you more funding as well.

https://www.wfhm.com/loans/leonard-campbell/index.page
0 votes
Miekeba Jones, Agent, Silver Spring, MD
Tue Jun 26, 2012
Hi Sheila23,

I now someone who will come out and do an estimate for free. contact me miekeba@heymannrealty.com
0 votes
, ,
Sat Nov 14, 2009
Sheila, Two questions. Can you trim the actual repairs to 29K? That would put you within the Streamline K. The Streamline 203k allows "k" costs upto 35K. The 203k worksheet adds in permits, inspection fees, contigency percentage etc.... add this onto the repairs and you'll find that 29K is normally the maximum for an FHA 203K Streamline.
What does a Streamline get you? NEW, as of two months ago (September). The contractor can recieve upto 35% of the costs at settlement. This maybe enough seed money to engage them to doing the work. Also, knowing that the money is coming from the government and they will be paid is crucial. They probably want to know what the time frame will be. Communication between the lender (loan officer) and the contractor is critical.
My website has a little more information on it http://www.maryland-fha-loans.com
also click on the web refernces in this Trulia post to goto my blog about the program (this may help)
0 votes
Arthur Hardy, Agent, Beltsville, MD
Thu Sep 24, 2009
That is understandable. The FHA 203K program requires more inspections, more approvals and more time to do the work. Many repair guys would rather skip the additional layers of headache and do another job. This is another case where working with a good realtor familiar with the 203K program would be able to connect you with 203K contractors. As for the idea of a personal loan to fix up the home there are good and bad issues involved in choosing that as a way to go. Again you need a professional realtor with rehab and repair knowledge.

Arthur Hardy, Realtor
W.C. & A.N. Miller Realtors
4910 Massachusetts Ave NW
Suite 119
Washington DC 20016
(202) 362-1300 office
(202) 362-3164 fax
(202) 895-2860 direct
web arthurhardyjr.com
email arthurhardy@LNF.com

Know of anyone thinking of buying or selling a home? Referrals are greatly appreciated.
Web Reference:  http://www.arthurhardyjr.com
0 votes
Ramesh Chand…, Agent, Arlington, TX
Mon Sep 14, 2009
U r better of working with the high estimate , if u can handle it.
Then if u spend less u can reduce the loan amount.

The best way to do this is close it as a regular fha.
Make a deal with seller to do fha required work to be done by u with personal loan, b4 fha inspector comes.
This is because 203k loans are expensive(of course u can refinance after 3 payments).
If u do any pre-fha-inspection, makes sure u have an iron-clad agreement to consider the amount is used to put a mechanics lien, so that if current lender doesn't accept the deal , u can collect the money from the foeclosing bank. Use an attorney so that u r covered.

Short sales , particularly with 203k requirements, can be nerve racking. But , if that is the only way u can get ur house of choice, it will be worth it.
rgds,
Ramesh Chandra
Saab Realtors
703 635 8209
mepcigroup@gmail.com
0 votes
Arthur Hardy, Agent, Beltsville, MD
Mon Sep 14, 2009
That is perfectly understandable. There are specific requirements in completing this kind of renovation because it has to meet FHA standards, be checked and approved by the FHA lender and inspectors, and not just any construction or handyman will meet their standards. It is advisable that you work with a realtor like me who has done rehabs and can help guide you through with repair people who are familiar with the 203K process. Using contractors already approved will make this a much smoother process.

If you are not working with a realtor and would like my help please feel free to contact me!

Arthur Hardy, Realtor
W.C. & A.N. Miller Realtors
4910 Massachusetts Ave NW
Suite 119
Washington DC 20016
(202) 362-1300 office
(202) 362-3164 fax
(202) 895-2860 direct
web arthurhardyjr.com
email arthurhardy@LNF.com

Know of anyone thinking of buying or selling a home? Referrals are greatly appreciated.
0 votes
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