“Truly Understanding FHA 203 K Loans”
I often get calls from folks that contact me after reading a blog or find my name on the FHA website. The 203 K business is being done by fewer and fewer banks, credit unions and other lenders. It is very easy to screw them up or have situations where the loan officers just don’t have a clue on how to do them.
These loans just plain take longer as there are hoops that other loans just don’t have, but in most cases it is a wonderful way to literally create instant equity. Here is an example:
I’m doing a loan for Lynda, she has a contract to buy a home for $83,000 and the renovation costs will be just under $30,000. When the appraisal was done the value came in at $146,000. Now that is what I call instant equity.
It is important to work with someone that knows what they are doing otherwise an already challenging loan becomes almost impossible.
Below is an email from a prospective client that has been communicating via email but is now ready to meet to get pre-qualified, as she has a home in mind:
That’s great news, are there any restrictions as to what that can be used for? This house has ice damage to the pipes for the water system. I'm trying to figure out what percent of the plumbing needs to be done, I just wanted to make sure the 203k would still be allowed in this situation.
Image courtesy of tiramisustudio/freedigitialphotos.net
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Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
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