203K or ? For Personal Res. - Posted by Bob - Tx


#1

Posted by Jason-DTX on November 03, 1998 at 14:02:57:

I didn’t realize Bob was from the Dallas area. Malone Mortgage in Dallas specializes in 203K loans. They have the red tape down pat. I haven’t talked to them in over a year but I’ll bring their # to Aireo.
Jason


#2

203K or ? For Personal Res. - Posted by Bob - Tx

Posted by Bob - Tx on November 03, 1998 at 08:10:25:

I am looking at purchasing, for my primary residence, a home that will need about $40k in rehab. FMV = $160k, Offer=$115k with the need for the $40k for foundation, paint, renovation of baths,etc. The general consensus here seems to be that the 203k plan is a loser…how about some ideas as to how to get the money back for repairs.
Thanks
Bob


#3

Re: 203K or ? For Personal Res. - Posted by Jason-DTX

Posted by Jason-DTX on November 03, 1998 at 11:07:55:

I agree they’re not bad for an owner occupant loan, but you do need to use a lender that has done them and likes them. A lot of them don’t. You also need to keep in mind the upper limit in your area for FHA loans. In my area I think its only $107K. It changes often and varies from city to city.
Jason


#4

Re: 203K or ? For Personal Res. - Posted by JohnD(CO)

Posted by JohnD(CO) on November 03, 1998 at 08:38:43:

I dont think 203K is loser. For 203k loans there is a lot of red tape and you have to hire licensed contractors to do the work, if you have the cash or a line of credit to finance the rehab it would probably be better to do that, but if you dont then 203k may be your only option. (I suspect that most lenders are telling you that 203k is a loser because they are not set up to process the loans)


#5

raised FHA guide lines - Posted by Bud Branstetter

Posted by Bud Branstetter on November 03, 1998 at 12:52:47:

Jason, The other week when I was in Colorado for Bill’s conference an article can out that they had raised the guidelines. In Denver it jumped from 169K to better that 197K. I am sure Bob will be at the next AIREO meeting. They will have lenders there that do the 203K loans and know the guidelines.


#6

Up in most, down in a few. - Posted by FJW

Posted by FJW on November 03, 1998 at 20:07:47:

There were several major markets, the higher valued markets, where they actually lowered lowered the loan amounts.