I'm buying a 2unit through FHA firsttime homebuyers and 203k streamline for the repairs. Is the 3.5% down for the whole loan or just the sale

Asked by First Time Home Buyer, 04102 Tue Feb 7, 2012

price? The house I'm buying is going to be converted to a 2 unit, and needs extensive repairs before it will be liveable (a barn needs to be repaired; kitchen needs appliances; wiring, roofing etc). As I mentioned above, I'm going through the FHA first time home buyer's program, then I'll be using a 203k streamline loan for the repairs. I'm wondering if the 3.5% down payment is calculated based on the amount of the entire loan (i.e. the 203k loan AND the sale price of the house minus seller concession) or is it just based on the sale price of the house minus seller concession?

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4
Scott McCaul…, Other Pro, Portsmouth, NH
Tue Feb 7, 2012
Yes, the 3.5% is for the total loan. The loan will be based on what the sale price is PLUS additional renovations and closing costs. The 203K is an excellent program- when you are working with a company who does them effectively. My company has a complete 203K Renovation department, so we work hand-in-hand with you from start to finish, and set proper expectations for all invoved. It really is a nice program. If you need any assistance, please call me any time- 603-380-3798.

Regards,
Scott McCauley
Annie-Mac Home Mortgage
Web Reference:  http://www.LendWithScott.com
2 votes
Kim Bitsoli, Agent, SOUTHGATE, MI
Tue Feb 7, 2012
Hello Home Buyer,
With a 203k Streamline the 3.5% is on the total amount. (With repairs). I would check with your Leander about the repairs, if you move walls and so on for the conversion it will no longer be a 203k streamline, just a 203k. When you do a 203k the cost will be much greater. Its always better to check with you Leander!
Kim Bitsoli
Real Estate One
734-658-5872
kbitsoli@yahoo.com
0 votes
Suzanne Robe…, Agent, Portland, OR
Tue Feb 7, 2012
The 3.5% down will be based on the sales price minus seller's concessions plus improvements.
I am concerned though since you mentioned the property needs extensive repairs if this is your best option.
There is more to the program that I would like to tell you about that could determine your cost and whether it is the best choice. If you would like to chat more please call or e-mail.
Suzanne Roberge
Keller Williams Realty
207-879-9800
sroberge@kw.com
0 votes
Paul Diou, Agent, Portland, ME
Tue Feb 7, 2012
Hi there: I believe that you need 3.5% of the entire loan amount : not just the sales price. I would check with your lender to make sure but that is my understanding and I help my buyer clients with these types of sales all of the time. Your lender should be able to answer the question for you within seconds if you can get them on the phone or face to face. I hope that info helps, if you are in need of a buyers agent to help you through the process feel free to reach out to me, I am the Broker/Owner of Maine Realty LLC located in Portland Maine. 207-671-6604 http://www.sellwithpaul.com

Cheers,

Paul
0 votes
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