203k consultant hercules: 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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203k consultant hercules: What is the biggest problem with a Streamlined 203k? - 11/18/11 06:22 PM
The biggest problem is getting a contractor out to bid the job in a timely manner.
In 2005 the FHA came out with the Streamlined k loan program. Light work, but included roofing, updating of bathrooms and kitchen, flooring, paint, etc, just no structural issues. It took off like a lightning bolt. Now, six years later there is allot of talk about lowering the construction amount to $10,000 (nothing formal as yet). This is being considered as too many of the Streamlined k loans are going south.
It sounds easy, just get a couple contractor bids and close the loan... lol. … (2 comments)
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203k consultant hercules: 203k Teamwork Hercules - 03/18/09 07:32 AM
now and then you hear about a 203k loan that went wrong. I'm not going to sugar coat anything here but most of those could have gone right had they been working with a "TEAM" of experts who know what they are doing. A team is like a well tuned engine.
You don't have to be an expert if you work with experts. If you haven't done a 203k before then look for a team that in place who has closed some. If you are a lender looking to do your first 203k call a consultant and use a team they … (0 comments)
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