Comments for 203K Mortgage Lender Blog http://www.203kmortgagelender.com/blog Information, Questions & Answers about the FHA 203K Tue, 20 Jul 2010 06:34:02 +0000 hourly 1 http://wordpress.org/?v=3.0 Comment on Do You Have an FHA 203K Question? Post it Here by Marvin Hernandez http://www.203kmortgagelender.com/blog/do-you-have-an-fha-203k-question-post-it-here/comment-page-1/#comment-892 Marvin Hernandez Tue, 20 Jul 2010 06:34:02 +0000 http://www.203kmortgagelender.com/blog/?p=103#comment-892 <strong>Mark Asked:</strong> When seeking financing, does the buyers have to go thru a bank or mortgage company that directly offers 203K financing or can they iniciate the loan thru, say, their own local bank who inturn can go thru a 3rd party. In my area there are no known 203K financers within 60 miles and many buyers are nervous to go to outsiders. B O A in a city 60 miles away offers it but the local branch is not listed on HUD list of financers as offering 203K financing. Can a buyer go to the local B O A to apply who in turn goes to a larger branch to complete the financing? Can a bank work with a mortgage company in another area to complete the 203K financing? Is there somewhere where 203K financers in North Carolina are listed that the HUD listing? <strong>Marvin's Answer:</strong> Hi Mark, An FHA 203k loan can be acquired through a Bank, Mortgage Banker or Mortgage Broker. The proximity of the lender shouldn't matter just make sure they have some experience in handling FHA 203k loans. If you need a referral in your state feel free to contact me as we plan to expand and help homebuyers and homeowners throughout the U.S. Thank you and good luck. Marvin Hernandez Mark Asked:
When seeking financing, does the buyers have to go thru a bank or mortgage company that directly offers 203K financing or can they iniciate the loan thru, say, their own local bank who inturn can go thru a 3rd party.
In my area there are no known 203K financers within 60 miles and many buyers are nervous to go to outsiders.
B O A in a city 60 miles away offers it but the local branch is not listed on HUD list of financers as offering 203K financing. Can a buyer go to the local B O A to apply who in turn goes to a larger branch to complete the financing?
Can a bank work with a mortgage company in another area to complete the 203K financing?
Is there somewhere where 203K financers in North Carolina are listed that the HUD listing?

Marvin’s Answer:

Hi Mark,

An FHA 203k loan can be acquired through a Bank, Mortgage Banker or Mortgage Broker.

The proximity of the lender shouldn’t matter just make sure they have some experience in handling FHA 203k loans.

If you need a referral in your state feel free to contact me as we plan to expand and help homebuyers and homeowners throughout the U.S.

Thank you and good luck.

Marvin Hernandez

]]> Comment on Do You Have an FHA 203K Question? Post it Here by mark lail http://www.203kmortgagelender.com/blog/do-you-have-an-fha-203k-question-post-it-here/comment-page-1/#comment-889 mark lail Sun, 11 Jul 2010 21:32:23 +0000 http://www.203kmortgagelender.com/blog/?p=103#comment-889 when seeking financing, does the buyers have to go thru a bank or mortgage company that directly offers 203K financing or can they iniciate the loan thru, say, their own local bank who inturn can go thru a 3rd party. In my area there are no known 203K financers within 60 miles and many buyers are nervous to go to outsiders. B O A in a city 60 miles away offers it but the local branch is not listed on HUD list of financers as offering 203K financing. Can a buyer go to the local B O A to apply who in turn goes to a larger branch to complete the financing? Can a bank work with a mortgage company in another area to complete the 203K financing? Is there somewhere where 203K financers in North Carolina are listed that the HUD listing? when seeking financing, does the buyers have to go thru a bank or mortgage company that directly offers 203K financing or can they iniciate the loan thru, say, their own local bank who inturn can go thru a 3rd party.
In my area there are no known 203K financers within 60 miles and many buyers are nervous to go to outsiders.
B O A in a city 60 miles away offers it but the local branch is not listed on HUD list of financers as offering 203K financing. Can a buyer go to the local B O A to apply who in turn goes to a larger branch to complete the financing?
Can a bank work with a mortgage company in another area to complete the 203K financing?
Is there somewhere where 203K financers in North Carolina are listed that the HUD listing?

]]> Comment on Do You Have an FHA 203K Question? Post it Here by Marvin Hernandez http://www.203kmortgagelender.com/blog/do-you-have-an-fha-203k-question-post-it-here/comment-page-1/#comment-776 Marvin Hernandez Thu, 17 Jun 2010 00:56:14 +0000 http://www.203kmortgagelender.com/blog/?p=103#comment-776 <strong>Catherine asked:</strong> Marvin, we are investors in the San Fran Bay area. We want to buy a house with our cash plus hard money or transactional funding, and turn around and market it to an end buyer owner/occupier as a 203k fixer. Do you have available hard money lenders or short term transactional fund lenders? We are working with a 203k consultant but have not yet done this type of a deal. We were considering starting a 203k non-profit but are there still no lenders lending to non-profits? <strong>Marvin's Answer:</strong> Yes, hard money rehab loans are available but they are typically used by investors. There are Conventional rehab loans also available and these are geared for owner occupied, second homes and investors. I will have someone e-mail you directly with more information. In Regards to FHA 203k loans for non-profit organizations, I do have some updated news and they are available!!! Non-profits who are eliglible, must be an existing organization with a minimum 2 years experience in providing housing for low-and-moderate income persons Good luck. Marvin Hernandez Catherine asked:

Marvin, we are investors in the San Fran Bay area. We want to buy a house with our cash plus hard money or transactional funding, and turn around and market it to an end buyer owner/occupier as a 203k fixer. Do you have available hard money lenders or short term transactional fund lenders? We are working with a 203k consultant but have not yet done this type of a deal.

We were considering starting a 203k non-profit but are there still no lenders lending to non-profits?

Marvin’s Answer:

Yes, hard money rehab loans are available but they are typically used by investors.
There are Conventional rehab loans also available and these are geared for owner occupied, second homes and investors.

I will have someone e-mail you directly with more information.

In Regards to FHA 203k loans for non-profit organizations, I do have some updated news and they are available!!!

Non-profits who are eliglible, must be an existing organization with a minimum 2 years experience in providing housing for low-and-moderate income persons

Good luck.
Marvin Hernandez

]]> Comment on Rehab Loan Options for Homeowners by Marvin Hernandez http://www.203kmortgagelender.com/blog/rehab-loan-options-for-homeowners/comment-page-1/#comment-770 Marvin Hernandez Tue, 15 Jun 2010 18:51:00 +0000 http://www.203kmortgagelender.com/blog/?p=523#comment-770 <strong>Suzy said: </strong> Were In the midst of a 203k now. What a nightmare! Choose your consultant, mortgage company and gc wisely!! Do not use anyone recommended by the mortgage co, do your own homework and choose based on what you feel. We used a consultant rand gc based on the mtg co recommendation and were kinda forced to do so “it’s easier”. Were 7 weeks away from the 6 month deadline and still no baths or kitchen. Draw checks held for weeks, gc has no money to work or buy materials. It’s awful and the only one I. Jeopardy is us. Please be careful and listen to your gut feelings if you so one of these. Potentially it’s a great program but unless the parties are on board and do what they’re supposed to it’s a terrible experience to go through. Wish there were more experience stories out there. Could use a success story about now. Good luck all and happy rehabbing!! <strong>Marvin's Reply:</strong> Hi Suzy, Sorry to hear about your 203k nightmare. Definitely choosing the right FHA Consultant and General Contractor is important. Recently we posted information regarding <a href="http://www.203kmortgagelender.com/blog/203k-contractors-and-cost-consultants/" rel="nofollow">Contractors & Consultants</a> on the 203k mortgage lender blog. The preference should always be that “ You , the Buyer/ Borrower pick out your own contractor as well as the Consultant (when needed) as you will be the one dealing with the day to day progress and issues ... not the lender. So going with your gut feelings as well as some personal references is a very good idea. Suzy, you may already know this but as far as the contractor getting paid, the disbursement checks are two party checks which require the Buyer/Borrower to sign. This ultimately gives you the last word and keeps you in charge. Now the question is getting the checks. Due to the increased popularity of the program some lenders may be slower than others in releasing the draw checks but in those cases the lender should be more understanding of the time frame deadlines if they are the ones slowing down the process. Any contractor who has dealt with or will be working with the 203k should be aware that their check comes after the phase is complete not before, so having a contractor that has the resources to do work first and to get paid later would help. If you prefer, and have the funds available, you could consider paying the contractor or sub-contractor yourself and then reimbursing yourself when you receive the disbursement check as an alternative. As in any type of rehab or construction, 203k or NON-203k, there is always something that comes up and with bigger projects there will probably be bigger stories to tell. Best of luck to you I hope at the end of all this you enjoy your rehabbed home. Marvin Suzy said:

Were In the midst of a 203k now. What a nightmare! Choose your consultant, mortgage company and gc wisely!! Do not use anyone recommended by the mortgage co, do your own homework and choose based on what you feel. We used a consultant rand gc based on the mtg co recommendation and were kinda forced to do so “it’s easier”. Were 7 weeks away from the 6 month deadline and still no baths or kitchen. Draw checks held for weeks, gc has no money to work or buy materials. It’s awful and the only one I. Jeopardy is us. Please be careful and listen to your gut feelings if you so one of these. Potentially it’s a great program but unless the parties are on board and do what they’re supposed to it’s a terrible experience to go through. Wish there were more experience stories out there. Could use a success story about now. Good luck all and happy rehabbing!!

Marvin’s Reply:

Hi Suzy,

Sorry to hear about your 203k nightmare. Definitely choosing the right FHA Consultant and General Contractor is important. Recently we posted information regarding Contractors & Consultants on the 203k mortgage lender blog. The preference should always be that “ You , the Buyer/ Borrower pick out your own contractor as well as the Consultant (when needed) as you will be the one dealing with the day to day progress and issues … not the lender. So going with your gut feelings as well as some personal references is a very good idea. Suzy, you may already know this but as far as the contractor getting paid, the disbursement checks are two party checks which require the Buyer/Borrower to sign. This ultimately gives you the last word and keeps you in charge.

Now the question is getting the checks. Due to the increased popularity of the program some lenders may be slower than others in releasing the draw checks but in those cases the lender should be more understanding of the time frame deadlines if they are the ones slowing down the process. Any contractor who has dealt with or will be working with the 203k should be aware that their check comes after the phase is complete not before, so having a contractor that has the resources to do work first and to get paid later would help. If you prefer, and have the funds available, you could consider paying the contractor or sub-contractor yourself and then reimbursing yourself when you receive the disbursement check as an alternative.

As in any type of rehab or construction, 203k or NON-203k, there is always something that comes up and with bigger projects there will probably be bigger stories to tell.

Best of luck to you I hope at the end of all this you enjoy your rehabbed home.

Marvin

]]> Comment on Fixer-Upper Financing: 203k Program Provides Buyers with Renovation Funds by Interior Demolition Sydney http://www.203kmortgagelender.com/blog/fixer-upper-financing-203k-program-provides-buyers-with-renovation-funds/comment-page-1/#comment-760 Interior Demolition Sydney Sun, 13 Jun 2010 07:31:45 +0000 http://www.203kmortgagelender.com/blog/?p=435#comment-760 Very useful info. Hope to see more posts soon! Very useful info. Hope to see more posts soon!

]]> Comment on Do You Have an FHA 203K Question? Post it Here by Catherine http://www.203kmortgagelender.com/blog/do-you-have-an-fha-203k-question-post-it-here/comment-page-1/#comment-759 Catherine Sat, 12 Jun 2010 22:33:44 +0000 http://www.203kmortgagelender.com/blog/?p=103#comment-759 Marvin, we are investors in the San Fran Bay area. We want to buy a house with our cash plus hard money or transactional funding, and turn around and market it to an end buyer owner/occupier as a 203k fixer. Do you have available hard money lenders or short term transactional fund lenders? We are working with a 203k consultant but have not yet done this type of a deal. We were considering starting a 203k non-profit but are there still no lenders lending to non-profits? Marvin, we are investors in the San Fran Bay area. We want to buy a house with our cash plus hard money or transactional funding, and turn around and market it to an end buyer owner/occupier as a 203k fixer. Do you have available hard money lenders or short term transactional fund lenders? We are working with a 203k consultant but have not yet done this type of a deal.

We were considering starting a 203k non-profit but are there still no lenders lending to non-profits?

]]> Comment on Rehab Loan Options for Homeowners by Suzy http://www.203kmortgagelender.com/blog/rehab-loan-options-for-homeowners/comment-page-1/#comment-746 Suzy Wed, 09 Jun 2010 21:18:55 +0000 http://www.203kmortgagelender.com/blog/?p=523#comment-746 Were In the midst of a 203k now. What a nightmare! Choose your consultant, mortgage company and gc wisely!! Do not use anyone recommended by the mortgage co, do your own homework and choose based on what you feel. We used a consultant rand gc based on the mtg co recommendation and were kinda forced to do so "it's easier". Were 7 weeks away from the 6 month deadline and still no baths or kitchen. Draw checks held for weeks, gc has no money to work or buy materials. It's awful and the only one I. Jeopardy is us. Please be careful and listen to your gut feelings if you so one of these. Potentially it's a great program but unless the parties are on board and do what they're supposed to it's a terrible experience to go through. Wish there were more experience stories out there. Could use a success story about now. Good luck all and happy rehabbing!! Were In the midst of a 203k now. What a nightmare! Choose your consultant, mortgage company and gc wisely!! Do not use anyone recommended by the mortgage co, do your own homework and choose based on what you feel. We used a consultant rand gc based on the mtg co recommendation and were kinda forced to do so “it’s easier”. Were 7 weeks away from the 6 month deadline and still no baths or kitchen. Draw checks held for weeks, gc has no money to work or buy materials. It’s awful and the only one I. Jeopardy is us. Please be careful and listen to your gut feelings if you so one of these. Potentially it’s a great program but unless the parties are on board and do what they’re supposed to it’s a terrible experience to go through. Wish there were more experience stories out there. Could use a success story about now. Good luck all and happy rehabbing!!

]]> Comment on Do You Have an FHA 203K Question? Post it Here by Marvin Hernandez http://www.203kmortgagelender.com/blog/do-you-have-an-fha-203k-question-post-it-here/comment-page-1/#comment-687 Marvin Hernandez Tue, 25 May 2010 07:48:54 +0000 http://www.203kmortgagelender.com/blog/?p=103#comment-687 Jenny asked: Hi Marvin, I’ve lived in the house for 2 years, just notice about 203k loan, I plan to make a 2nd unit in up-stair, and add a bath room, kitchen, so I can rent it out. Do I qualify this type of loan? currently I have FHA loan on our 1st mortgage. If I qualify what should I do next? <strong>Marvin's Answer</strong>: Hi Jenny, Yes...you can add 2 or more units to your existing property as long as you don't go pass the 4 unit maximum. That rule also applies to owners looking to downsize to 4 units as well who might currently have 5 or more units. Whether you have an FHA or a conventional loan it doesn't matter because the new FHA 203k loan will be paying off the existing loan you currently have and will give you the additional funds for your project. The next step is to find out how much you would qualify for which can include the new expected rental income from that additional unit your planning to build...which of course will help. Feel free to contact me when you're ready to get started. Jenny asked:

Hi Marvin,

I’ve lived in the house for 2 years, just notice about 203k loan, I plan to make a 2nd unit in up-stair, and add a bath room, kitchen, so I can rent it out. Do I qualify this type of loan? currently I have FHA loan on our 1st mortgage. If I qualify what should I do next?

Marvin’s Answer:

Hi Jenny,

Yes…you can add 2 or more units to your existing property as long as you don’t go pass the 4 unit maximum. That rule also applies to owners looking to downsize to 4 units as well who might currently have 5 or more units.

Whether you have an FHA or a conventional loan it doesn’t matter because the new FHA 203k loan will be paying off the existing loan you currently have and will give you the additional funds for your project.

The next step is to find out how much you would qualify for which can include the new expected rental income from that additional unit your planning to build…which of course will help.

Feel free to contact me when you’re ready to get started.

]]> Comment on FHA 203K Loan Information by Marvin Hernandez http://www.203kmortgagelender.com/blog/fha-203k-info/comment-page-1/#comment-686 Marvin Hernandez Tue, 25 May 2010 07:46:07 +0000 http://www.203kmortgagelender.com/blog/?p=196#comment-686 <strong>Kendall Bunn asked:</strong> What is an average loan application approval rate? <strong> Marvin's Answer:</strong> Hi Kendall 203k loan applications have the same approval rate as regular FHA and Conventional loans. If a Borrower can get approved for let's say $400,000 on a regular loan then the only difference from a 203K would be that the same $400.000 must also include the purchase price and improvements. As far as property approval, 203k loans have a higher approval rate than regular loans as the condition of the property is not a factor. Kendall Bunn asked:
What is an average loan application approval rate?


Marvin’s Answer:

Hi Kendall

203k loan applications have the same approval rate as regular FHA and Conventional loans. If a Borrower can get approved for let’s say $400,000 on a regular loan then the only difference from a 203K would be that the same $400.000 must also include the purchase price and improvements. As far as property approval, 203k loans have a higher approval rate than regular loans as the condition of the property is not a factor.

]]> Comment on Do You Have an FHA 203K Question? Post it Here by Jenny http://www.203kmortgagelender.com/blog/do-you-have-an-fha-203k-question-post-it-here/comment-page-1/#comment-685 Jenny Tue, 25 May 2010 01:02:58 +0000 http://www.203kmortgagelender.com/blog/?p=103#comment-685 Hi Marvin, I've lived in the house for 2 years, just notice about 203k loan, I plan to make a 2nd unit in up-stair, and add a bath room, kitchen, so I can rent it out. Do I qualify this type of loan? currently I have FHA loan on our 1st mortgage. If I qualify what should I do next? Hi Marvin,

I’ve lived in the house for 2 years, just notice about 203k loan, I plan to make a 2nd unit in up-stair, and add a bath room, kitchen, so I can rent it out. Do I qualify this type of loan? currently I have FHA loan on our 1st mortgage. If I qualify what should I do next?

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