We had a great show and tell meeting with the area loan originators from Bank of America with Rob Gilroy and his team. They are based in the Santa Clara Valley area primairly but their territory has just been broadened dramantically to inolcud inland to Bakersfield and on the cost just past Monterey.
We had a great time and it was a learning experience for all of us. I enjoy these sessions as it dials me in to the lender's specific requirements. I learned that Bank of America requires a 20% contingency on their Streamlined k loans. That is major when shopping for a 203k loan thinking the construction can go to $35,000... it never can. In the case of Bank of America is is $28,500.
If you are a consultant and someone from Bank of America calls you to do the consult or compliance inspection and help with the project and your contractor bid is $28,600, it is now a full 203k because the $35,000 must include costs and fees as well as the lender imposed 20% contingency. Whereas you might be doing one with a Wells Fargo branch and it can go to $34,200 with no contingency.
The reality is that they both go to the same end result. Bank of America can get the same amount of work done, they just do it from the contingency rather than from the bid straight out. It is very helpful that YOU know the rules you are playing by and ask the right questions. That is where the consultant comes in.
We are proud to be part of the Bank of America team too and happy to do the Streamlikned k inspections for them as well. The really nice thing is that they don't care if it is streamlined or full 203k as the do them all.
We look forward to working with all the loan agents in that meeting as they get started with this wonderful product.
