“Why Do a 203K When the Home Needs NO Repairs?”
You just can’t make this up! I gave my clients a pre-qualification letter for an FHA loan. It was for a property that was being sold in “as is” condition, therefore the bank holding title wouldn’t accept a regular FHA prequalification. They would only accept an FHA 203K or conventional prequalification.
The selling agent didn’t know what to do as unfortunately the clients didn’t qualify for a Conventional loan because of their debt ratio. This makes no sense to me to do a 203K loan when there are no repairs needed.
It is very frustrating to be put in a position to come up with at least $5,000 worth of repairs and appliances, but that is what we need to do to get past the issue. How crazy this business can be.
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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
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