There are a lot of Limited 203k's going on around us wow. I had no idea. As busy as we are on the full 203k doesn't come close to the activity in the Limited 203k. I appreciate all the plan reviews for the lenders who want to keep their deals in the Streamlined k mode.
Just a reminder. The 203k can start out a Limited 203k but if you fail to disclose all of the issues with the home you may find it becomes a full 203k. I had one the other day that went up to closing when they received the appraisers report that disclosed some of the work as "structural". The lender called me in a panic as they now had to have a full 203k.
Some lenders only do the Limited 203k and they for the most part have discovered it is cheap insurance to have a plan review. It just makes good sense. There are no surprises. Luckly for the lender situation above that they do the full 203k as well. Imagine if they only did the Limited and this situation came up... the deal would have gone to another lender and the entire process would start all over again delaying the closing.
What I'm finding in my own business is quite often a borrower who has a trade fails to disclose problems in his own trade with the idea of fixing those things himself and saving money... he/she borrows less money. Then the appraiser gets out there and sees that these issues weren't addressed and has no choice but to turn it in... it becomes a full 203k. By having a Plan Review prior to the appraiser's visit will put those new items into the scope of work and the Limited 203k will remain a Limited 203k.
...by the way we were able to turn the full 203k around in a day for them. That is the other myth about the full 203k. They don't have to delay closings. In fact if you use one of our group of consultants the inspection and subsequent report will NEVER be the reason for delaying the closing. Good luck with your next k.
M
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