Finding Your Way with the FHA 203k Loan
|
Many city and business leaders have long recognized the “catch 22″ of financing for fixer upper homes. You can’t get a loan if the home needs repaired, and you can’t get the repairs the home needs unless you (a) own the home and (b) have the funds to fix it up out of pocket. Speculators and real estate companies have cashed in on this by buying with cash and fixing up homes in good markets.
Trying to navigate Kansas City for a FHA 203k loan can be daunting. The home situation seems to be a critical issue. The need for shelter is a basic human right. I wish it were that simple. If you have looked around Kansas City for a FHA 203(k) lender, you may have run into some questions and concerns. We will look at some of those here, and offer a word of caution about the FHA 203k loan. |
|
The FHA 203(k) Loan; a Home Repair Loan and a Mortgage All in One – Forbes
According to the FHA:
All persons who can make the monthly mortgage payments are eligible to apply for a 203(k) loan. To find a lender in your area who is experienced with FHA 203(k) mortgages, use the search tool at http://www.hud.gov/ll/code/llslcrit.cfm and check the box for 203(k).
Are there alternatives to the FHA 203(k) loan?
Erik Johansson - Redfin Preferred Lender says on August 4, 2009:
There are other products that will accommodate your needs and which one you choose will depend on your individual circumstances. You mentioned that you have 20% to purt down and so one option might be to put less down and pay for the improvements in cash. Do not rely on getting a HELOC after the closing. The appetite for those products have significantly declined and they are hard to come by.
A Word of Caution About HUD 203(k) Mortgage:
February 27th, 2010 at 9:23 pm, Rene Martinez Says:
Heed this article. I’m in the process of trying to buy a wonderful home using a 203k from Wells Fargo. The problem is Wells Fargo has screwed up the paperwork many many times. Now the sellers have threatened to kill the contract. Likely the whole thing will result in about 4 months and $7k wasted on my end. 203ks are a joke. If you insist on getting one, DON’T use Wells Fargo. Chose a smaller and more agile company. The gov’t isn’t on the side of the people either. They haven’t done anything appreciable to make banks keep their end of contracts.
A Word of Caution About HUD 203(k) Mortgage
September 27th, 2010 at 2:44 pm, CNJ Says:
I just bought a housing using a 203k. It was not a headache for me. Everything went smoothly. I would say the bank did not do a great job of educating us on the ins and outs of the process. I was fortunate enough to find a great general contractor who educated us about the process, setting realistic expectations and providing us with quality work.
According to the FHA:
All persons who can make the monthly mortgage payments are eligible to apply for a 203(k) loan. To find a lender in your area who is experienced with FHA 203(k) mortgages, use the search tool at http://www.hud.gov/ll/code/llslcrit.cfm and check the box for 203(k).
Are there alternatives to the FHA 203(k) loan?
Erik Johansson - Redfin Preferred Lender says on August 4, 2009:
There are other products that will accommodate your needs and which one you choose will depend on your individual circumstances. You mentioned that you have 20% to purt down and so one option might be to put less down and pay for the improvements in cash. Do not rely on getting a HELOC after the closing. The appetite for those products have significantly declined and they are hard to come by.
A Word of Caution About HUD 203(k) Mortgage:
February 27th, 2010 at 9:23 pm, Rene Martinez Says:
Heed this article. I’m in the process of trying to buy a wonderful home using a 203k from Wells Fargo. The problem is Wells Fargo has screwed up the paperwork many many times. Now the sellers have threatened to kill the contract. Likely the whole thing will result in about 4 months and $7k wasted on my end. 203ks are a joke. If you insist on getting one, DON’T use Wells Fargo. Chose a smaller and more agile company. The gov’t isn’t on the side of the people either. They haven’t done anything appreciable to make banks keep their end of contracts.
A Word of Caution About HUD 203(k) Mortgage
September 27th, 2010 at 2:44 pm, CNJ Says:
I just bought a housing using a 203k. It was not a headache for me. Everything went smoothly. I would say the bank did not do a great job of educating us on the ins and outs of the process. I was fortunate enough to find a great general contractor who educated us about the process, setting realistic expectations and providing us with quality work.
