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Old 10-23-2008, 01:22 PM
 
22 posts, read 144,279 times
Reputation: 28

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Hi all-
After lots of independent research on mortgages, we've decided that a FHA 203(k) Streamline may be a very good option for us. I've learned that anyone who can process a 203(b) can do a 203(k) Streamline (not the long one). The problem is, we can't find lenders for our area that are familiar with this or will do one.

Can anyone recommend a lender who will do 203(k) STREAMLINE for the Nashville, TN area?

Also, has anyone gone through this? Can you comment on your experience?

Thanks!
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Old 10-23-2008, 01:38 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,097,275 times
Reputation: 952
I don't know if they have retail channels for it, but Taylor, Bean & Whitaker have a solid 203(k) program from what I hear, although I have no firsthand experience.
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Old 10-23-2008, 03:21 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,094,482 times
Reputation: 1007
It would probably be done the same way as a 203b streamline.

I'm doing one now, and I bet it's the same way.

Not ALL lenders do 203k loans. There are only a handful that do so.

I haven't done one in a while, but it was complicated at first, and this maybe the reason why nobody does it.

Quote:
Originally Posted by shammy79 View Post
Hi all-
After lots of independent research on mortgages, we've decided that a FHA 203(k) Streamline may be a very good option for us. I've learned that anyone who can process a 203(b) can do a 203(k) Streamline (not the long one). The problem is, we can't find lenders for our area that are familiar with this or will do one.

Can anyone recommend a lender who will do 203(k) STREAMLINE for the Nashville, TN area?

Also, has anyone gone through this? Can you comment on your experience?

Thanks!
Quick reply to this message
 
Old 10-23-2008, 05:20 PM
 
Location: Cary, NC
1,036 posts, read 3,627,489 times
Reputation: 503
Not every lender that does a 203b will do a 203k. They CAN do them, but that doesn't mean they will.

Many lenders won't because ~30% of 203k loans (from what I was told by HUD) end up in some form of litigation. Almost always between the buyer and the people doing the repairs. Either they went over budget, weren't done properly or not to the satisfaction of the home owner. Unfortunately the lender gets dragged into the situation in many cases so lenders have cut back or stopped doing the program. Taylor, Bean & Whitaker does do the program... but they only wholesale it through brokers, they do not offer retail.

I have done some in NC and FL, but not licensed in TN. They aren't so bad as long as the person that does the loan and the contractor are experienced with the program. If you want you can PM me and I can provide referrals in the state that I know can do them.
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Old 10-25-2008, 02:49 PM
 
Location: MID ATLANTIC
7,598 posts, read 17,618,792 times
Reputation: 8078
Quote:
Originally Posted by mayoung View Post
I hope the 30% in litigation is not a reality for you. I've done over 2,500 of them and only two went to court, both of them were thrown out. See if you can find a 'Metro Cities Mortgage' in your area. They are pushing the streamline 203k. You can also go to the HUD website and search lenders under the 203k. Here is the link that came up. Just paste in a brower window and start calling them. Lender List Search Results - HUD

these lenders have made 203k loans during the past year in Tennessee.
No offense, I worked for Metrocities Mortgage and trying to close any loan was beyond difficult. I will give them this, they can draw flow charts and organizational charts like no one else, but putting it into action was a failure. It got to the point we could not change a loan amount within 5 days of closing - the system just could not handle changes in time. Hello????? Now, with the market at a snail's pace, it may be better, and in all fairness, the west coast had a great reputation. I was on the east coast.

I think another reason why so many don't take on the 203k loans is due to improper processing and closing, missing disclosures or lack of required inspections. Once HUD sends back a loan, it gets real expensive flexing muscle and trying to get everyone to cooperate. It doesn't matter if you signed a statement you would assist with post-closing requirements (also called error and omission statement), or the closing attorney has an insured closing letter (title company says they are good guys and will comply w/ all lender requests). A loan not insured or delivered to an investor on time costs money and the idea is to make money. Once a few lenders start paying, they realize this is not the program for them.

I would like to ask the OP what kind of loan is this,the interest rate, and what is the current loan balance? I apologize if it's a "duh" question, but sometimes a little clarity can save a lot of time.
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Old 10-27-2008, 09:25 AM
 
22 posts, read 144,279 times
Reputation: 28
Smartmoney-

The Streamline 203k is the "short" version of FHA's 203k program. In a nutshell, FHA allows you to finance the cost of repairs into your mortgage. The original 203k can be quite extensive and allows for structural remodeling. The streamline 203k has a limit of $35k in repairs and does not allow for any architectural changes (anything requiring blueprints). Streamline is structured to have two payouts 50/50.

Any lender who can process a 203b can process a 203k Streamline, however only specific approved lenders can process a 203k.

In terms of interest rate? Not sure. I have quotes for a 203b FHA, but would like to know if lenders inflate the rate for a Streamline k?

FYI- The property is located in a historic neighborhood and my husband is in the construction industry (added benefit!)

This is an extremely condensed version of FHA 203K-Here is HUD's official site:
203K Rehab Loan Insurance - HUD

ALSO- these programs will allow you to add on an EEM if need be, not included in the $35k.
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Old 07-19-2010, 07:16 AM
 
1 posts, read 4,450 times
Reputation: 10
I am looking for anyone else who has had issues with Bank of America and their 203 programs. Such as not being able to contact them with questions and when you do reach someone you get vague answers and different answers from different people. I have now lost over 8000 dollars because of their in ablity to answer questions or reply at all.
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Old 07-19-2010, 10:11 AM
 
Location: Laguna Niguel, CA
768 posts, read 3,958,169 times
Reputation: 456
Bank of America is one of just a handful of lenders doing the 203k mortgages these days. Even though many other lenders fund them, most of the time they are sold to Bank of America for the construction payout disbursement process. I've had a few customers complain about the lack of communication and efficiency, only way we've been able to be successful is that I call into Bank of America with them and press people for the answers. Ask your loan officer if they'd be willing to do a conference call into Bank of America with you.

Why do you feel you've lost $8k?
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Old 02-15-2014, 07:13 PM
 
1 posts, read 972 times
Reputation: 10
Default 203k referral for NC

I was looking to find out who you knew in NC/Charlotte that did these.
Thanks!


Quote:
Originally Posted by rcarrillo View Post
Not every lender that does a 203b will do a 203k. They CAN do them, but that doesn't mean they will.

Many lenders won't because ~30% of 203k loans (from what I was told by HUD) end up in some form of litigation. Almost always between the buyer and the people doing the repairs. Either they went over budget, weren't done properly or not to the satisfaction of the home owner. Unfortunately the lender gets dragged into the situation in many cases so lenders have cut back or stopped doing the program. Taylor, Bean & Whitaker does do the program... but they only wholesale it through brokers, they do not offer retail.

I have done some in NC and FL, but not licensed in TN. They aren't so bad as long as the person that does the loan and the contractor are experienced with the program. If you want you can PM me and I can provide referrals in the state that I know can do them.
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Old 02-16-2014, 12:24 AM
 
165 posts, read 266,390 times
Reputation: 83
I am in Charlotte and do these. PM me. I am also licensed in TN

We also offer a conventional reno program.
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