**lawby2005**

firedancer22

saw your post about 203k's on the buying a home board.  i'm in brooklyn, and would love to know the name of your lender, as we are likely going the 203k route as well.  also, any info you have about the process is much appreciated.

 thanks!

~leslie

lawby2005

Hello Leslie:

You should come over to this board more often!

Congrats on your decision to buy a home. We did/actuallly still working on a 203K and we went with Wells Fargo. They are very strict let me tell you, but it's been ok to be honest.

My loan officer's name is Marsha Morency (718)310-4343. She is the best in that field and her office is in Astoria. You do mostly everything via fax...I swear I wouldnt even had met her if I was not feeling slightly frustrated and worked in the area.

You would need a licensed/insured contractor to estimate the cost of the repairs. This is rolled into the mortgage but paid out in small installments, effectively paying the contractor after he accomplishes some of the repairs. For us, we only took out a very small amount so they gave us 35% which was supposedly for materials, and then the rest will be given when our project is done. We had to change contractors mid process and that is why we are delayed.

Also, there are different types of 203K, depending on the amount you request for repairs. Another thing is the interest rate is slightly higher than the going rate...but just slightly.

I think it's a great program for a house that needs TLC that you could get on the cheap. Also think hard and fast about renovations, it's not for the lighthearted; for me I have been to the edge and back! LOL

 Good luck and feel free if you have any other questions.

firedancer22

thanks for the feedback!

DH's uncle is a certified contractor, and is going to come out and make a line item list of needed renovations and price it out for us.  (that way we know whether to even bother making a bid or not...if the cost of reno is going to outweigh the cheap asking price of the house, then it's not worth it for us, because we don't want a huge mortgage and no spending money.) 

luckily for us, though, the home is corporate owned and the bank is just looking to unload the property for whatever price they can get.  a flipper bought it in 2007, and when the market crashed, he ran out of money before he finished, so the top three floors are pretty nicely done, and it's just the garden level (where the kitchen and bathroom are) and yard that need a lot...and i mean A LOT...of work.

if we move forward with this offer, i'll definitely contact your lender for some input as to rates and whatnot. 

thanks so much!!!!

lawby2005

You are welcome and good luck!

I definitely agree that if the renos are going to come out as being more pricey, then forget it! The good thing is that your uncle is skilled and can maybe chip in here and there or show you guys some tips.

We did a lot of the work ourselves since we only asked for a small amount for renos. My hubs and I are handy, well he is mostly but I think we did a great job so far!

Good Luck again!