Home Buying in Saint Louis>Question Details

Melanne, Home Buyer in Saint Louis, MO

Looking for 5 year arm on a 203k with a rate of 3.375 that BOA was offering but contractor bids delayed us and now BOA isn't doing these

Asked by Melanne, Saint Louis, MO Thu Oct 20, 2011

anymore. We have a contract on a house that closes in 2 weeks. We were going to do a streamline with BOA but the contractors that we were getting bids from didn't get them to me in time so we lost the ability to go through BOA. The interest was 3.375 and now our mortgage banker says their only other investor that does these loans with them is at a rate of 4.125 and we have to go standard 203k. Between going standard and higher interest it up-ed the payment by almost 100 dollars month; it's doable as I don't plan to stay in the FHA loan for long (a waste of monthly money with the insurance) but if I have to go conventional 203k I rather apply that 50 dollars, due to the increased interest, to getting more money to make the house nicer. This whole process is frustrating. Anyone have knowledge of the current FHA203k 5 year arm rates from various lenders? Can you recommend anyone that has a high success rate of these loans that don't have crazy overlays? Hard to find experts in this field.

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Bait and switch is a common problem in our industry....as somebody who has been 100% dedicated to doing FHA 203k and Homestyle Rehab loans for over 13 years you can not do an FHA 203k rehab loan for that rate.

The loan term is driven by several factors including loan size and your credit rating. I would expect to have a rate of about 4.500% on any type of rehab loan (30 year fixed w/ zero points) and you should certainly work with somebody who specializes in these loans instead of somebody who does them part time.

Tony Collins
0 votes Thank Flag Link Thu Oct 20, 2011
http://www.trulia.com/profile/frankruzicka Frank Ruzicka is in Saint Louis County and does 203k loans
http://www.trulia.com/profile/brentkluge/ Brent Kluge pretty much does only 203k loans and does loans in Missouri (even though he is in Maryland).

http://www.trulia.com/voices/qa/activity/Missouri---25/q_203k/ is a link to all of the questions that contain "203k" in Missouri here at Trulia, sorted by how recent the responses were, check out the various responses and you'll see loan officers responding and real estate agents recommending some.
0 votes Thank Flag Link Thu Oct 20, 2011
Melanie interest rates have gone up in the last week. I dont know if they have gone up that much but it sounds as if you had an introductory rate for BOA that other are not matching. You should search for a mortgage company that is approve dto do fha in your are, they will have access to many more programs with a number of different banks. Your agent should have a loan officer they use more than others who would have proven themselves, you should get them involved.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Oct 20, 2011
They obviously aren't all the same as BOA was 3.375 while the other is 4.125; that's a 0.75% difference and 50 dollars a month difference. I do have an agent and am using the mortgage banker he recommended but he isn't an expert; this is his first one and he REALLY wants to do one but I'm not sure I want to be someone's Guinea Pig. Has anyone dealt with REbuild USA? I called then almost 72 hours ago and was told that they would have a specialist call me in 24-48. I am really frustrated as it seems no matter who I am dealing with or trying to deal with no one fallows through; not contractors, bankers, lenders etc... now I understand why mortgage applications are down 15%; too hard to get anyone to work with.
0 votes Thank Flag Link Thu Oct 20, 2011
You will find that lenders generally will have the same rates for the same types of loans regardless of who the name of the lender is. BOA has been a source of 203K money, but it is getting more difficult to find these types of loans. Many investors are no longer wanting to take the risk often associated with these loans. Wells Fargo may be another source and you might want to check with Eagle or Pulaski banks in Saint Louis.
As it seems you are trying to purchase a property, I would hope you have a real estate agent representing you. Ask your agent as he/she should have local banking contacts that can counsel you on options. The chances of getting what you need done in 2 weeks is virtually impossible, given the underwriting requirements most lenders have and especially on a 203K type loan. You will more than likely need to ask for an extension for your loan. Talk to your agent.
Web Reference: http://bobwatershomes.com
0 votes Thank Flag Link Thu Oct 20, 2011
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