We are looking to secure a FHA 203K loan for buying a home. Do we need a buyer agent who is experienced with 203K?

Asked by Awareme, Tenafly, NJ Sun Aug 5, 2012

Almost every home that we have looked at in Tenafly requires at least some renovation, some even complete remodeling. My wife and I are strongly considering the route of a 203K (most likely not streamlined). I have heard that if a buyer is interested in short sale property, it is best to have an agent who is experienced in short sale properties. Is this also true regarding buyer agent and 203k loan, or is it something more confined to how experienced the lender is with 203k?

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14
Liz Santos, , Teaneck, NJ
Tue Nov 20, 2012
In the heirarchy of who needs FHA 203(k) related expertise, it's lender first, followed by contractor second, and realtor in third position. We are a direct 203(k) lender located in Parsippany. Call me if you'd like to talk about it. Do you have a 203(k) experienced contractor? If not, I can help with that as well. Especially for a full(k), you need the contractor to know full-well how it works and what will be required of him/her.
http://www.lizsantos.rhfunding.com

and good luck to you!!!
0 votes
john smith, Agent, dumont, NJ
Sun Oct 28, 2012
Hello,

Tenafly as a town is an excellent choice.I agree that FHA 203K route is the best route if you would like to renovate with the mortgage.I would like to suggest that you would need a team of an excellent Real Estate Agent/Mortgage Broker.

For the right home search you would need the assistance of the Real Estate agent and for working out with the mortgage figures you would like the assistance of an excellent experience Mortgage broker.Its very important to have the team in order for you to know how your numbers will change under different circumstances.FHA 203K LOANS are best worked out if we work with the right mortgage brokers.

I have worked with some excellent mortgage brokers,who have alot of experience with 203K loans originations and approvals.

I would be happy to provide you my services.

Thanks,
Karan Prabhakar
Ph: 201-906-0103
Email: Karan.Prabhakar@gmail.com
0 votes
, ,
Sun Aug 12, 2012
Good Afternoon:t is not necessary a buyers agent, but a competent Mortgage Company that is familiar with 203K LOANS. The most important factor is to know your numbers and requirements
and how the 203K loan is originated and draws are released if a HUD inspector is needed depending on the amount needed for home. I highly rate First Prestige Mortgage Services,Inc to give you the quality service. Call 888-FHA-ROAD or 973-744-8300. They will get you what you need.
0 votes
203k Guy, , Maryland
Sun Aug 12, 2012
As a HUD 203k Consultant, I often assist people outside my market area to find and build a good 203k/rehab team. I am happy to hep you find a good consultant tohelp you uunderstand he process and work with your contractor and lender of choice. You can find some additional information and FAQ on my website or email me foor some forms and other info to review with your chosen realtor, Lender or Contractor.

Best wishes,
Vito Simone
HUD Consultant
Web Reference:  http://203kServices.com
0 votes
Sharon Wayman, Agent, Nashville, TN
Fri Aug 10, 2012
Need someone knowledgable and patient the mortgage company is more important and a 203k certified inspector
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Gary Smith, Other Pro, Ridgeland, MS
Fri Aug 10, 2012
Both of your concerns are warranted; find a team. Here's a good place to start.
Web Reference:  http://www.RehabK.com/MAP
0 votes
Rasp, , Florida
Tue Aug 7, 2012
Yes you should use a buyer agent familiar with short sales, no for the 203K loan. You do need a approved FHA 203k lender. Call FHA Home Office 1-800-225-5342. This one is in Atlanta, Ga. but I'm sure they can give you the number for office serving the area in which you are interested.

Ralph Spurlock, FHA 203k Loan consultant A0929, FHA 203K compliance inspector L755

http://www.fha.floridabuildinginspect.com
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Laquita Baez, , New Jersey
Mon Aug 6, 2012
I couldn't agree more with Barbara Weismann's thorough answer.
Once you settle with your preferred 203k lender, find a Realtor knowledgable in short sales that will guide you the process. In my experience with short sales, one must have plenty of patience and time to wait as the process can take up to 60 days negotiating with the banks to approve the short sale.

~Best with finding your new home~

Laquita Baez
Licensed Realtor in NJ and GA
0 votes
Barbara Weis…, Agent, Tenafly, NJ
Mon Aug 6, 2012
Although many banks will do a 203k loan, not all bankers explain the 203k loan to buyers adequately in my experience. I would suggest that you speak to a few bankers who specialize in 203k loans almost exclusively. 203k loans will most definitely allow you to fix up a home within your budget but they have added expenses - for example, there are minimally 4 added appraisals. Basically these are bank inspectors who appraise the work completed and authorize that the contractor is paid. So it's a bit of an added expense but also ensures that the work is completed before the contractor is paid.

In my view you need 3 things - a banker who specializes in 203k loans and can explain them to you fully, a contractor who has the financial ability to do the work first and then get paid and an attorney who understands the 203k process so you can be advised correctly on that level.

With short sales, the most critical component is your attorney. If you do not have an attorney who is absolutely expert in short sales you are not, in my opinion, adequately protected no matter how knowledgeble your real estate agent may be. Remember always that in buying a home in Bergen County, you are using sales contracts and only an attorney can adequately represent you on such matters. Having a real estate agent who is adept at short sales is also critically important but the most urgent need is that of an attorney who is expert at short sales whether you are a buyer or seller.
0 votes
Helene Jeane…, Agent, Metuchen, NJ
Mon Aug 6, 2012
I'm in synch with the previous recommendations. An experienced mortgage broker will be the key. I work with an exceptional broker. Your can find his contact information on this website: http://www.Randolph-Chester-Homes.com Wishing you success!
Leni
0 votes
Awareme, Home Buyer, Tenafly, NJ
Mon Aug 6, 2012
Barbara - Thanks for the recommendation, we will definitely reach out to him. We just recently refinanced our condo, and while the mortgage broker we used is excellent, he doesn't seem to be experienced with 203K when we inquired about it.

James - We are not actually looking at REO properties. I only brought up short sale properties sort of as a comparison with buying with 203K in terms of the importance of agent experience with it (though I see now that I presented that poorly). Sorry for the confusion.

Suzanne - Thanks for website. We will certainly take a look at it.
0 votes
Suzanne MacD…, Agent, Succasunna, NJ
Mon Aug 6, 2012
It would be helpful. You can find recommendations, I believe, at http://www.rebuildusa.com
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James Gordon…, Agent, Hamilton, OH
Mon Aug 6, 2012
If you are doing a FHA 203k full blown loan you need a lender that is familar with them. You should also be in contact with the conultant and in the process of selecting a general contractor to do the work. The closing time is short that most lenders give you on REO properties and you can not afford weeks of time to start the process when you have an accepted offer. Build the relationships now so when you win a bid on a property you can get started instead of getting ready to get started.
0 votes
Barbara Ostr…, Agent, Closter, NJ
Sun Aug 5, 2012
The lender is the all important key (although working with a realtor who understands how to present an offer like that is also critical). I have worked with John Minnicozzi from Wells Fargo in Paramus, he is expert at advising prospective buyers on how a 203K loan works. (201)556-4102, tell him I recommended him!

Barbara Ostroth
Coldwell Banker RE/Oradell
http://www.BarbaraOstroth.com
201-965-3105 cell
0 votes
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