Prospect Mortgage - #2 Volume FHA 203K Renovation Lender for 2010

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Mortgage and Lending with Guaranteed Rate NMLS #151088

The US Department of Housing and Development has released its FHA 203K Endorsement Report.  It is for the Fiscal Year ending September 30, 2010.  In the period of October 1, 2009 - September 30, 2010, HUD ranks Prospect Mortgage as the #2 volume FHA 203K lender in the country.  For the 2010 Fiscal Year, Prospect Mortgage closed 928 FHA 203K Renovation mortgages.  A total of 22,491 FHA 203K loans were endorsed by HUD in the 2010 Fiscal Year by all mortgage companies.

The most shocking data comes from the number of companies that closed less than 5 of these loans.  In Atlanta alone, there were 25 mortgage companies that only closed one 203K loan in the entire year.  That is for the entire company for the entire year.  Eight companies only closed two 203K's each, while three companies closed three loans and four companies closed three each as well. 

The FHA 203K mortgage can be quite complex.  A company that only closes one of these loans per year is probably not going to be the most proficient at getting one successfully closed.  When considering an FHA 203K Renovation mortgage, it is imperative to make sure that you are working with a mortgage company dedicated to this loan program. 

 

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It is always advisable to consult with a knowledgeable lending professional when navigating today's turbulent mortgage and real estate marketplace.  I am committed, qualified and equipped to help you evaluate your options!

 

Also check out:

Conventional Financing Mortgage Program Overview/Updates

FHA Financing Mortgage Program Overview/Updates

USDA Financing Mortgage Program Updates  

 

Programs Include:

 

  • Conventional (Fannie Mae & Freddie Mac)

  • FHA, USDA, & VA

  • Jumbo to $3,000,000

  • Bank Statement Program for Self-Employed Borrowers

  • Foreign National Program

  • Investor Cash Flow

  • Non-Warrantable Condos

  • Georgia Power Leaseholds for Lake Burton, Rabun, & Seed

 

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  • Rodney Mason is a Licensed Branch Manager located in Atlanta, GA.   He can be reached at (404) 591-2453.
  • Providing financing for all cities across Georgia including: Acworth, Albany, Alpharetta, Athens, Atlanta, Augusta, Austell, Avondale Estates, Blairsville, Bloomingdale, Blue Ridge, Bogart, Brunswick, Buckhead, Buford, Canton, Carrollton, Cartersville, Chatsworth, Clayton, College Park, Columbus, Commerce, Conyers, Covington, Cumming, Dahlonega,  Dacula, Dalton, Dawsonville, Decatur, Doraville, Douglasville, Duluth, Dunwoody, East Point, Fayetteville, Flowery Branch, Gainesville, Greensboro, Hampton,  Hapeville, Hinesville, Hiram, Jackson, Jefferson, Jonesboro, Kennesaw, Lagrange, Lawrenceville, Lilburn, Lithia Springs, Macon, Madison, Metter, Morganton, Morrow, Newnan, Norcross, Oakwood, Peachtree City, Pooler, Richmond Hill, Riverdale, Rome, Roswell, Sandy Springs, Savannah, Scottdale, Statesboro, Stockbridge, Stone Mountain, St Marys, Sugar Hill, Suwanee, Thomasville, Thunderbolt, Tucker, Tybee Island, Valdosta, Waleska, Warner Robins, Waycross, Wilmington Island, Winder, Woodstock, and many more.

    Providing financing for all cities across Alabama including:
    Alabama Port, Anniston, Athens, Auburn, Bessemer, Birmingham, Boaz, Bridgeport, Cedar Bluff, Chickasaw, Clayton, Coden, Dauphin Island, Decatur, Dothan, Eufaula, Fairfield, Fairhope, Florence, Foley, Forestdale, Fort Morgan, Fort Payne,Gasden, Grand Bay, Gulf Shores, Heron Bay, Homewood, Hoover, Jasper, Josephine, Madison, Meadowbrook, Midfield, Mobile, Mon Louis, New Hope, Orange Beach, Oxford, Oyster Bay, Phenix City, Prichard, Rainbow City, Saraland, Satsuma, Scottsboro, Selma, Troy, Theodore, Tillmans Corner, Trussville, Tuscaloosa, Vestavia Hills, Warrior and many more.

  • Providing financing for all cities across Florida including: Altamonte Springs, Atlantic Beach, Boca Raton, Bradenton, Cape Coral, Clearwater, Coral Springs, Daytona Beach, Delray Beach, Destin, Fort Lauderdale, Fort Myers, Fort Walton Beach, Gainesville, Hollywood, Homestead, Jacksonville, Jupiter, Key Largo, Key West, Lake City, Largo, Marathon, Mexico Beach, Miami, Naples, New Smyra Beach, Ocala, Orlando, Palm Coast, Panama City Beach, Pensacola, Pompano Beach, Port St Joe, Sanibel Island, Sanford, Sarasota, St Augustine, St Petersburg, Tallahassee, Tampa, Vero Beach, West Palm Beach, & Winter Park, and many more.

 

  • Providing financing for all cities across South Carolina including: Aiken, Anderson, Beaufort, Bluffton, Charleston, Columbia, Conway, Edisto Island, Florence, Greenville, Hilton Head, Johns Island, Myrtle Beach, North Augusta, Orangeburg, Rock, Hill, Spartanburg, Sullivans Island, Summerville, and many more.  
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    Providing financing for all cities across Tennessee including: Athens, Brentwood, Bristol, Chattanooga, Clarksville, Cleveland, Cookeville, Dyersburg, Franklin, Gatlinburg, Greeneville, Johnson City, Kingsport, Knoxville, Maryville, Memphis, Morristown, Murfreesboro, Nashville, Newport, Oak Ridge, Pigeon Forge, Sevierville, and many more

 

All mortgage lending guidelines are accurate at time of post, but are subject to change without notice.  Please call for the most current information.

    

           

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Rainer
26,626
Jon Elshaug
Sinacore & Associates - Fallbrook, CA
Independent REALTOR 760.390.8396 - USMC (Ret)

Question, is a portion of the 203K added on top off the selling price and than given out in increments.  Came across a sold listing that mentioned 203k with a 20K over the list price.

Feb 27, 2011 03:19 AM #1
Rainmaker
418,851
Rodney Mason
Guaranteed Rate - Atlanta, GA
Licensed in AL, FL, GA, SC, & TN

Jon....With a 203K, the renovation costs are added to the loan amount.  The sales price is the sales price.  It sounds like that particular buyer just paid $20K more for some reason.

Feb 27, 2011 04:21 AM #2
Rainmaker
601,337
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Rodney - Those are some pretty impressive numbers.  While Cobalt's 203k numbers aren't that phenomenal, I believe we are a little better than some of the other mortgage companies presented.  Like Prospect, we're licensed in many states, which I think probably helps our numbers a little.  I'm curious though, what are Prospects numbers out here in Los Angeles & Ventura counties.

Mar 05, 2011 04:22 AM #3
Rainmaker
418,851
Rodney Mason
Guaranteed Rate - Atlanta, GA
Licensed in AL, FL, GA, SC, & TN

Donne....Being licensed in multiple states does help. According to the HUD data, we closed 31 of the 425 203K loans closed from all mortgage companies through HUD's LA Field Office.

 

Mar 05, 2011 11:17 AM #4
Rainmaker
601,337
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Rodney - That's a pretty good number for Prospect.  I'm actually shocked and amazed that there were 425 203k loans from the LA office.  However, when I think about it, the HUD Santa Ana office actually covers three counties (Ventura, LA & Orange) with the latter two being absolutely HUGE counties.  So when you think about it like that, it begins to make more sense. 

Thats approx 35 properties a month across three counties and based on the thousands of sales, the percentage that are 203k is actally rather small.  That's a percentage that's actually more indicative of what I'm seeing in my market here in Los Angeles & Ventura counties.  Can't really speak for Orange county.

Mar 05, 2011 03:58 PM #5
Rainmaker
418,851
Rodney Mason
Guaranteed Rate - Atlanta, GA
Licensed in AL, FL, GA, SC, & TN

Donne....I had no idea LA county was actually that large until I looked it up.  LA County by itself covers the same amount of land as about 10 metro Atlanta counties.

Mar 06, 2011 05:58 AM #6
Rainmaker
601,337
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Rodney - Yeah, LA county is absolutely massive and Orange county is not all that much smaller.  However, Ventura county is rather small; probably like one of your average county sizes.  As a matter of fact, Orange & Ventura together are probably almost as big as LA county. 

Based on those three counties (that fall under the HUD Santa Ana center), there are literally thousands of sales a year so 425 203k's probably makes up approx 10% (maybe 15%) of all sales.  That is actually pretty small compared to how many all cash sales there are that could have sold for more with a 203k loan.

However, without a major attitude adjustment of listing agents and their sellers, I really don't see 203k's making much of an impact here in SoCal.  On another note, I just saw the pics of the dump listing that my Realtor friend just got and I'm not sure a streamline is going to be sufficient (it's bad).  I still have to make some calls to find out what kind of bldg violations and permit issues it has on it.

Mar 08, 2011 04:43 AM #7
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Rainmaker
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Rodney Mason

Licensed in AL, FL, GA, SC, & TN
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