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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
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Thank you.
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203k loan
Anyone here ever do one? I am looking into one for a rehab/refinance, but they seem to be this elusive creature that In only hear about but have not heard of anyone getting.
For less then ten cents a day, you can feed a hungry child.
Re: 203k loan
I'm quite certain my ex-boyfriend's father and stepmother had one for a home they were rehabbing in the West End.
I wonder if RI Housing could answer any questions you have. I've found them to be accessible and friendly on a few matters.
In today's market they are hard to get. Your house cannot be valued less than what you paid for it and you need to have 2 appraisals---as is value and after completion value. With the state of appraisals these days that is where the hook is. In the end the lender has to want to put the work into getting it done, and I have hear rumors that HUD (FHA) does not want to be endorsing many of them because of FHA solvency issues and the higher risk of default these bring. Those that are being approved are being helpd under a magnifying glass.
Here is a link that might help:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou the Q&A is interesting.
We were going to get one for the house that was almost ours. You really, really need to get a loan officer who specializes in them. We happened to have a super good one who taught classes to other loan officers and REAs so she knew her shiit. Also, from everything I've read, you do NOT want BofA servicing your 203K -- at least not until all the renovations are done and all the contractors are paid. There are tons and tons of stories from people whose contractors didn't get paid from the escrow account and stopped work, etc.
Although we ended up with a regular old FHA loan in the end, I did hours upon hours of research on this and can probably answer basic questions or at least point you in the right direction.
I would say the most essential thing is getting the right bank/loan officer. Here's who we were going to use (and did use in the end, but not for a 203K): http://www.myprospectmortgage.com/ Supposedly they do the most 203Ks in the country.
Looks like they're licensed in RI. We loved our experience with them.
The poster formerly known as PDXPhotoGrl
Kay, I have a call into them, my original mortgage is from them. I believe that we exceed the income limits to use them for anything though.
We wanted to sell our house, but it looks like our CMA is going to come back low (a house 2 down from us just sold for 50k), and there is no point in selling our house and not making anything off it. We owe less than it's worth, but we would want to come out with a down payment for another and that's not happening.
So we want to instead expand upstairs and fix our stairs. We will redo the bathroom and kitchen, but we can do that part ourselves, as well as drywall and finish work. We need someone else for stairs and upstairs. I don't think we will get much with a traditional refi so we are looking into a 203k refi.
Thanks for the info everyone. PDX, are there income limits? I can't seem to find that anywhere.
For less then ten cents a day, you can feed a hungry child.
I do 203k loans in California. The 203k does not have any income limits. It's processed the same as a normal FHA loan. There are quite a few inaccurate answers here on this post. There aren't two appraisals. There's one appraisal with two values. The repairs aren't up to the lender, they are up to you. Many people are using this loan for repairs and remodels however the borrower does have to research this loan before they apply for it.
The 203k refi is different though. You can only do 97.75% maximum loan to value which means if you are underwater, there's no room to do a 203k refi loan. When using the 203k loan to purchase a home, the maximum amount that can be borrowed is 110% of the after improved (taking into account all the improvements) value, not the purchase price. So there's more leeway on the purchase vs the refinance.
It's very true you need to have and experienced lender, Loan Originator, and most importantly a contractor who's experienced with the nuances of the 203k loan. Most contractors don't like dealing with this loan. Going to a website like 203kcontractors.com or a similar site that trains contractors on how the 203k loan works is the place to go to find them and will save you headaches in the long run.
I wish you the best, and hopefully I've given you some valuable info on the 203k loan. For more 203k loan info feel free to go to http://www.203khomeloanrehab.com
Have a nice superbowl weekend! Kevin Walton