Do we need a termite report on a 203k loan? Gilroy to Stockton - 02/29/12 08:26 AM
The HUD guideline for the FHA 203k loan program doesn’t “require” a pest control report however it does “require” a pest control clearance at the end of the project. Therefore all of the lenders I’m aware of have a “supplemental requirement” calling for a pest report going into the project if it is a “full 203k loan”.
What about a Streamlined k? Do we need a pest report? Not necessarily. If you don’t have one you don’t need to respond to the repairs. If you have one and it is a streamlined k, you now have to clear it.
On … (3 comments)
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Streamlined k vs Full 203k what is the difference? Dallas to San Francisco - 02/28/12 07:59 PM
Streamlined k loans are for light weight repairs with no structural repairs. Many of the “Streamlined k lenders ONLY” look at a termite report as disqualifying it for a Streamlined k loan. There is no special qualification for an FHA lender to add “Streamlined k” loans to their offering. There is a plethora of this type lender but now and again, it can bite you and them as late in the game it is discovered there is a structural issue that makes it a “full 203k loan”.
If the appraiser goes through the home and finds so much as one item … (3 comments)
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I’m a home inspector, why do I need to know about the 203k? - 02/28/12 07:12 AM
There are several good answers to that. Every home inspector has been accused of “killing the deal” at one time or another and it just isn’t true. The home inspector is hired to discover whatever they can to “inform the borrower” so they go into the transaction with their eyes wide open. In any case they never kill a deal, the deal just becomes a 203k loan.
I did an inspection for a 203k loan refinance and room addition in which I discovered some foundation issues and when I pointed them out to the borrower who had … (1 comments)
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I’m a Realtor – Why should I promote the use of a 203k loan for my client? Sacramento to Santa Rosa - 02/27/12 07:34 AM
That is easy; you will sell more properties and get more referrals.
As a Realtor or Agent why should you push the 203k loan? Let’s start with the other agent, the one that tries to steer you away from the 203k. The only reason that happens is because they haven’t done their homework on the “k” products. That is correct. Why would I sell you something if I couldn’t answer those question you have about that item? I wouldn’t, in fact they are doing everything including lying about the program because they find it easier than taking a 1 hour … (2 comments)
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203k - what is it? - 02/26/12 07:23 PM
The FHA 203k loan guarantee program is a standard FHA loan (203b) with an additional “construction” component. That is to say you can purchase or refinance a property and get the money to renovate the property all in one low interest loan.
The lender actually loans their own money with a guaranteed from FHA that the loan will be paid in full under the terms of the loan or FHA will pay off the loan and take the property back.
The unique thing about this loan program is that it includes low interest, fixed interest. and money for the renovation all … (2 comments)
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Can a buyer really buy with no money down? In El Cerrito they are... - 02/26/12 08:48 AM
This is a big one. If you are involved with the FHA 203k at any level you can generate your own business without allot of effort. Just consistency - it wins out every time. Be there when they need the information.
I can’t count how many times I have asked groups at Realtor Associations how may people come into their offices each day just to find out after they have wasted about twenty minutes that the prospective home buyer doesn’t have any down payment.
Maybe the prospective buyer heard some TV or Radio show that says you can buy … (0 comments)
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Streamlined k - to save the day? El Cerrito and Kensinngton - 02/25/12 08:15 AM
How about a Streamlined “k” to save the day?
I hear horror stories about home values continuing to drop in many areas. So you have a deal and it is going through the process. There isn’t very much wrong with the home maybe a broken window or two, or dated or stained carpeting, but the seller is okay with you buying it “as is” and they have reduced the price a little to compensate you for the damages. The appraisal comes in 3-5% low and the deal, all of a sudden, is on the verge of collapse. The seller isn’t … (2 comments)
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What if I already purchase a home to live in and I need the money to fix it up? Oakland CA - 02/24/12 07:57 AM
The FHA 203k to the rescue again.
That is correct, and if you purchased a 1-4 unit property that you are living in or want to live in, within the last six months and can close the new loan prior to that six month anniversary you get to include the money you already put down as though you had just put it down now. If it was after that anniversary and you put 20% or more down you may still be able to get your construction money with no more money out of your pocket. This is a wonderful refinance … (0 comments)
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Why would I use an FHA 203k loan over a construction loan? El Dorado Hills, CA - 02/23/12 07:34 AM
Easy - it is less expensive and I get a permanent 30-year low interest fixed rate mortgage, one mortgage, no second at a higher rate. Which I see being advertised as before the crises set in. The banks are going back to their old ways of playing with the down payment; you don’t need to do that with a 203k loan or a Streamlined “k” loan. They have a low down payment already. If the buyer can’t come up with it then they may need to rent for a while and build up to a down payment, we have investors who … (0 comments)
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HomeStyle Renovation loans by FannieMae - Pleasant Hill, CA - 02/21/12 08:02 AM
This is a conventional loan product that is available to owner occupants and investors.
We have been consulting and providing final draw inspection services for HomeStyle Renovation loans since the late 1990’s. This is an interesting loan product as it is available for owner occupants and investors. Unlike the FHA 203k this loan can be used by investors. We can still assist you with your bid specifications and create your “scope of work” if you like or you can get a bid from a contractor and do it yourself. The key is again that you must address all … (0 comments)
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Investors - Why would a 203k be better than just paying cash and then getting a construction loan? - 02/20/12 09:48 AM
That is a no-brainer. There are many loans out there that can help you get a fixer both for owner occupants and for investors. We will look at a few for you, while the FHA 203k loan program is not an option for investors
<!--[endif]-->Let’s look first at investor options. You have the opportunity to purchase a fixer, a property that needs repairs thinking you are going to fix it up and make a little money on the side. You likely have another job and this is a part-time effort. BEWARE! You are … (1 comments)
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What does your client get for that “203k consultation fee?" - Hercules, CA - 02/19/12 08:12 AM
How is a Home Inspection different from a “203k compliance inspection”?
A home inspection is a wonderful tool that every home buyer should use when purchasing a home. It puts the client at ease in many cases. Most people don’t buy a house every day and many only buy one their entire life. I had an Aunt and Uncle that got married on the ship one the way to America around the turn of the century, settled in Richmond CA and never moved from that spot. There is a lot to be said about that but that is another story.
Let’s … (0 comments)
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203k loan - what is it? - 02/18/12 08:50 PM
The FHA 203k loan guarantee program is a standard FHA loan (203b) with an additional “construction” component. That is to say you can purchase or refinance a property and get the money to renovate the property all in one low interest loan.
The lender actually loans their own money with a guaranteed from FHA that the loan will be paid in full under the terms of the loan or FHA will pay off the loan and take the property back.
The unique thing about this loan program is that it includes low interest, fixed interest. and money for the renovation all … (2 comments)
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Policy Change by Wells Fargo Home Mortgage on 203k permit fees etc.... San Francisco - 02/11/12 07:05 PM
Once things are going well it seems like you would leave them alone and enjoy the ride. Not so with so many of the larger banks, however.
Wells Fargo has decided that the permit fees which are estimated, if not used for that purpose will be paid donw on the mortgage now and no longer will be moved to the contingency which has been the policy of all of the lenderws so it could be used on other improvements that may be needed.
The borrower is borrowing the money for 30 years and this money quite often can go to paying … (2 comments)
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203k consultant in San Jose CA - 02/02/12 12:53 PM
The consultant's job is to write up the bid specification and that has some "due dilligence" that goes along with the responsibility. It is often interesting to me how the RE agent and sometimes the Lender will push to get this done in 3 days and start calling every day thereafter to push this to an end. Lets look at the process...
1) Lender gets the loan started, they typically have it a week or two then pass it to us
2) We make an inspection and inform everyone that it should take about 4 days to a a week to … (0 comments)
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