FHA 203k Streamline Questions (loan, approved, foreclosed, fee)

[DFW_Freelancer]

Hi Everyone,

We're looking at doing a 203k Streamline loan to get some repairs done on the house we want to purchase. HUD has provided an appraisal (from June of 2010) and a PCR. No major repairs are needed according to the PCR (maybe $10k in cosmetic repairs, carpet replacement, etc).

Question 1) Our lender will do 203k loans, but not 203k Streamlines. He says it's for the borrower's protection, and that his investors insist on doing a $425 appraisal plus an inspection before and after repairs are made (plus the 203k consultant, etc). Does this sound right, or is he being shady?

Question 2) Should the HUD appraisal negate the need for another appraisal by the lender?

Question 3) Can anyone recommend a good, responsive 203k Streamline lender? (Dallas/Ft Worth area preferred, but we'd rather have "good" than "local", if we can't have both.)

Question 4) We're new homebuyers, so if we've missed something, please let me know.

Thanks!!
Janna in Bedford

[Swarm]

[FONT=Verdana]Hi, 203k can be extremely beneficial if you know exactly what you are getting into. I would suggest educating yourself on the loan before seeking a lender to help. You will find that number one there are not a lot of lenders doing 203 K Loans and number two if you happen to find a respectful lender be aware of the person handling your 203 K process. My reason for saying this is because some of the representatives have no idea what they are doing so when explained to you it becomes even more convoluted. [/FONT]
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[FONT=Verdana]My Wife and I purchased a foreclosed home at the end of Sept 2010 and we elected to do the 203 K process. Needless to say the person representing us had no idea what he was doing so we asked that he be removed from the transaction. We then dealt with the manager of the branch who cleared things up for us once he took over things became a lot more clear. [/FONT]
[FONT=Verdana]The answer to your first question is; if your lender will not do a streamline 203 K I would suggest finding another lender... Streamlines are for repair loans in the amount of 35K or less, anything higher would not be considered streamline. Anything higher will also cost you additional funds. Yes most lenders do require an appraisal before and I would recommend if buying a fixer you should always get it inspected. Price can vary depending on the appraiser. [/FONT]
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[FONT=Verdana]Second question You only have to have the property apprised by one or the other HUD or your Lender and normally your lender will take care of this through closing or have you pay this fee up front. [/FONT]
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[FONT=Verdana]Third Question; Yes Prospect Mortgage. Greensboro NC ask for Don Strader. [/FONT]
[FONT=Verdana]Good luck and remember it's easier if you educate yourself ahead of time. [/FONT]
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[rjrcm]

As Swarm mentioned, any lender will want to do their own appraisal to verify value. In any case, an appraisal from June would no longer be valid.

[TampaKaren]

Just attended a big ole meeting with members from BofA, HUD, Freddie/Fannie & local gov't housing officials. Each agreed that it's much better for the borrower to do the full 203K than the Streamline and it doesn't take any longer.

Following is a link to HUD's FHA page for Texas. You can also click on a link to find an approved lender (FHA and 203K) --> http://www.hud.gov/local/tx/homeowne...uyingprgms.cfm