Posted by Steve on October 25, 2001 at 22:53:21:
Thanks Angel,
I’ll keep it in mind.
HUD 203k program - Posted by Steve
Posted by Steve on October 24, 2001 at 13:53:08:
Hello all,
I’m considering the HUD 203k rehab loan program to buy a 4 plex fixer upper. Has anyone used the 203k and if so, can you tell me how it works and what your experiences were with it? Thanks you.
Re: HUD 203k program - Posted by Jose
Posted by Jose on October 29, 2001 at 21:13:44:
Steve;
The 203(k) Loan Program is a great program. You will have to owner occupy the property and hold it for
three years.
It’s a lot of work, however just like doing your first deal, once you do your first 203(k)you will be able to
do your second, maybe a third.
You can use the 203(k) the second time when you want to
sell your fixer upper to someone who will owner occupy
the property you have for sale. Using the 203(k) when
selling your property most likely will help you get
full asking price. Especially, if you use your newly gained knowledge and prepare all the necessary paper work for your buyer and use the same lender that did the 203(k) for you.
Wells Fargo and North American Mortgage are active
and FHA Approved Lenders and portfolio lenders. They
also do homestyle loans for non-owner occupied and
their own rehab loans. Of course there are several
other FHA approved lenders.
When doing a 203(k) loan be sure to describe fully all the repairs and upgrades you intend to do on your project including costs. FHA requires that the property need a minimum of $5,000.00 in repairs. With the cost of materials and labor now-a-days, this is not a big problem. Carpet and painting usually adds up to $5K.
Look for a 203(k) Consultant in your area. Ask the
lenders for the consultants they use. Call and talk to
the consultant and ask your questions.
If a consultant comes aboard, the charges are set by
FHA and based on rehab costs. Minimum charge is $400.00 up to $800.00+ for doing an inspection on the property, preparing the report stating what repairs are required plus helping with all the necessary paper work you will need. With a consultant on your team, the chances of getting the 203(k)approved are very good.
I have done several 203(k’s)in the past 5 years. If you
have further questions, email me and I will try to help
you as much as I can.
Hope this helps.
Jose
Re: HUD 203k program - Posted by Anne-ND
Posted by Anne-ND on October 25, 2001 at 15:44:40:
Steve,
I used one two years ago for a duplex that I live in. It worked well for me, and I usually recommend the program, but things have changed recently, and the money for these has dried up. Some financing institutions offer a “203K-like” loan, ask your local bankers and brokers.
good luck,
Anne
Re: HUD 203k program - Posted by Angel Gutierrez
Posted by Angel Gutierrez on October 25, 2001 at 09:39:14:
You’re gonna have a tough time with this program ‘slim.’
The amount of paperwork required to fulfill the obligations set forth by HUD and the loan amount…well, let’s just say…“would you do it?”
To use this program and to get a lender willing to jump the hoops…find a BIGGER and BETTER deal!
Lots 'o luck!
Angel
Dallas, Tx
Re: HUD 203k program - Posted by Steve
Posted by Steve on October 30, 2001 at 10:21:15:
Hello Jose,
Thanks so much for this information. It sounds very encouraging.
Re: HUD 203k program - Posted by Steve
Posted by Steve on October 25, 2001 at 22:51:56:
Thank yo for the info. Anne. There are six lenders in my area that are approved for the 203k program. I’ll check with them. I appreciate the information.