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

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.

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.

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.

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.