203-EASY Anybody familiar? - Posted by Pup

Posted by Rene Perrin on January 15, 1999 at 20:18:01:

PUP-

I think you can do a little better if you own the home free and clear. It will really depend on a number of things including the amount ($$) of rehab required in relation to both the current value and the after-repaired value. You may be better off just doing a cash out refi for the amount that you need to rehab and carry the property. The big point there is that you control the use of the money and do not need to get inspections from the lender. If the property is totally uninhabitacble right now, you may need a construction (rehab) loan but, again that would not be your first choice. Feel free to e-mail me with the particulars and I’ll steer you in the right direction.

Rene

203-EASY Anybody familiar? - Posted by Pup

Posted by Pup on January 14, 1999 at 19:38:40:

Does anyone have experience doing a 203-EASY Mortgage? Please advise. Thanks. - Pup

Re: 203-EASY Anybody familiar? - Posted by Rene Perrin

Posted by Rene Perrin on January 15, 1999 at 09:42:22:

The 203EZ is an asset based type loan which lends up to 70% of the after-appraised value of a home. (The LTV drops on greater than 1 units.) The buyer or borrower is required to put 20% of the purchase price as a downpayment with a minimum of $7500. The buyer must also cover closing costs. Points on a loan like this are about 6 or 7 and the rate is around 13% on a 30 year amortization.

This loan is for the rehabber and is a little different than a hard money loan because of the down payment required and the ability to draw up for funds to rehab the property. The lender that I use for my clients is located in the northeast but their may be other lenders for other areas.

Hope that helps-

Rene

Re: 203-EASY Anybody familiar? - Posted by Joey P SE AL

Posted by Joey P SE AL on January 14, 1999 at 23:32:38:

Are you talking about an FHA 203K loan? I have not had any experience with these, but I hear that they are loaned in order to rehab properties, and that the borrower must occupy when the work is done. When I began looking for a list of lenders who did these, I got the most help from my local realtors. Still have not contacted these lenders, though.

Joey

Re: 203-EASY Anybody familiar? - Posted by Pup

Posted by Pup on January 15, 1999 at 15:53:05:

Rene,
Thanks for the info. When you mention the ‘draw’, does that apply to the 203EZ or the hard money loan. I own the property free & clear, so can I use the property as downpayment? Do you recommend this program for someone with good credit? I’m planning on fixing up(if the weather ever improves) and selling as quickly as possible. Thanks again. - PUP