203K Loan??? Anyone???

[AIR]

Is anyone familiar with a 203K loan... from what I understand it is one loan with the combo of the mortgage plus some renovation money im guessing a higher rate and points?? Good/Bad???

[Dan Auito]

I've done three AIR their a good product, built in funds given out in draws for the rehab process, I always went with a three draw schedule. I didn't notice any higher % rate and there may have been 1 point for the lender dealing with the gov't. I think I got hit with a $50.00 fee for each draw inspection which is given to the inspector who comes out to ensure the work is done before each draw request check is cut. Do the 203K It's fine and works out well.

[Peach State Property Buyers]

We did one. Something that should be noted is that you HAVE to owner occupy the home and they WILL check to verify. So, if you are thinking about it for an investment property, don't. :)

[Peach State Property Buyers]

But, if you are going to owner occupy, it's a good program. We did ours through Countrywide. It was a good experience! :)

[AIR]

Interesting... I am going at 2 PM to bid on a property, I don't think I will need that much cash for repairs so I am not going to use the 203K for this deal. Thanks for the comments it is great to here they work so well. I will it in mind for future deals... now keep your fingers crossed for my bid.:SM039:

[DAM]

I am a TX lic. LO and helped a nice couple who picked up a foreclosure.

It was a 3 part modular on 2 acres for a price of 60K

Add 55K renovations and six months later they walked into a "brand new" to them home appraised at 180K. Bingo 65K immediate equity!

That was a couple of years back, it may be worth more than $250 now.

The place is wonderful up on a hill with a super valley view just north of SATX.

203K is a tedious process with a ton more paperwork. Great deal for the homebuyer and contractor,if they have time and patience. Not so great for the LO and home inspector.

So anyway, that is why I want to be on the buying and selling side now.