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I have been in the home search for almost a year now, and have talked with a number of potential local lenders, however I cannot seem to find one for what I am doing. I've taken A LOT of time to research all the different mortgage options and down payment assistance programs in Madison/Dane County, and it seems like 90% of the time when I go in to talk to a lender I am teaching them about it all. Then once I get past that, it seems like they back away and don't want to waste their time or something to help me apply for the down payment programs (which the applications HAVE to come from your lender). I have now found a property that I really want to act on, I am just in need of some recommendations from people who have used some of these down payment programs successfully.
The 3 main things I am looking for.. if ANYONE has had a similar situation I would appreciate it.
1) This property is HUD owned. It would be nice to have a lender familiar with that.
2) It needs work. I was trying to avoid FHA because of the high PMI, but for this house I really need a lender familiar with the FHA 203K program. Has anyone worked through this process in their own home purchase? I am starting to get intimidated with all the people that need to be involved, all the inspections, conditions that must be met, time frame, draws, etc. I can do all the research in the world, but I would love to get thoughts from home buyers who have been though this particular process.
3) There are a TON of options out there for down payment assistance programs. Has anyone purchased a home in Madison using any of these? Here are the 5 programs I am looking into
-DownPayment Plus (DPP)
-Home Start through the Realtor's Asso
City of Madison Specific:
-American Dream Downpayment Assistance Initiative (ADDI)
-Home Buy
-Homebuyer's Assistance (HBA)
Thanks in advance for sharing your experience with these!
I do loans and I am decent at the 203K financing. I can answer any questions you have in that field. I am also very good at HUD homes. Fire away on your questions.
I have been in the home search for almost a year now, and have talked with a number of potential local lenders, however I cannot seem to find one for what I am doing. I've taken A LOT of time to research all the different mortgage options and down payment assistance programs in Madison/Dane County, and it seems like 90% of the time when I go in to talk to a lender I am teaching them about it all. Then once I get past that, it seems like they back away and don't want to waste their time or something to help me apply for the down payment programs (which the applications HAVE to come from your lender). I have now found a property that I really want to act on, I am just in need of some recommendations from people who have used some of these down payment programs successfully.
The 3 main things I am looking for.. if ANYONE has had a similar situation I would appreciate it.
1) This property is HUD owned. It would be nice to have a lender familiar with that.
2) It needs work. I was trying to avoid FHA because of the high PMI, but for this house I really need a lender familiar with the FHA 203K program. Has anyone worked through this process in their own home purchase? I am starting to get intimidated with all the people that need to be involved, all the inspections, conditions that must be met, time frame, draws, etc. I can do all the research in the world, but I would love to get thoughts from home buyers who have been though this particular process.
3) There are a TON of options out there for down payment assistance programs. Has anyone purchased a home in Madison using any of these? Here are the 5 programs I am looking into
-DownPayment Plus (DPP)
-Home Start through the Realtor's Asso
City of Madison Specific:
-American Dream Downpayment Assistance Initiative (ADDI)
-Home Buy
-Homebuyer's Assistance (HBA)
Thanks in advance for sharing your experience with these!
There is another loan type called Homestyle, which goes up to 95% of post-improvement value. You can finance in up to 50% of the post-completion value in the form of improvements, ie., $150k in improvements to a home that will end up valued at $300k or more.
Great Mortgage Insurance options on this conventional loan type.
I do loans and I am decent at the 203K financing. I can answer any questions you have in that field. I am also very good at HUD homes. Fire away on your questions.
What has been your experience with people doing 203k loan, do they end up underwater?
After improved value. 203K loans never end up under value. Not that I experienced yet. the one I am closing today valued for $15,000 higher than the final loan amount
Sales price was apprx $80,000. Put $30,000 in improvements on it and appraised for $125K.
I enjoy doing these because other people shy away from them.
After improved value. 203K loans never end up under value. Not that I experienced yet. the one I am closing today valued for $15,000 higher than the final loan amount
Sales price was apprx $80,000. Put $30,000 in improvements on it and appraised for $125K.
I enjoy doing these because other people shy away from them.
Is there a reason to not go conventional at this point?
Many loan officers don't want to get involved with down payment assistance or 203K loans due to their not understanding them, the extra work involved, they are not certified to offer the down payment programs, sometimes the sellers, sellers realtor or buyers realtor don't want to work with a buyer that is using a down payment assistance programs or they just want it simple and won't put in any effort to helping you get the assistance.
I work with a lot of down payment assistance programs and I have found that the organizations have to certify the loan officers, so I would look on the website of the organization offering the assistance or contact them directly to see if they have a list of lenders or loan officers that are approved. This way you find the lenders that are approved, have worked with borrowers that need assistance in the past and want to help you get the assistance you need.
Also, ask if the lender or loan officer has worked with a 203K loan before. If they did they know the ins and outs of them and can get it completed for you.
Good luck.
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Down payment assistance
