Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 09-27-2010, 05:21 PM
 
149 posts, read 550,212 times
Reputation: 184

Advertisements

We are in process of getting an FHA 203k Streamline mortgage. Our lender is saying she can't tell us we can actually get the financing until she has information like the bids from contractors for doing the proposed work. In other words, she says she can't even submit the loan for an approval until then.

We thought that the FHA 203k Streamline loan -- because it will only allow a loan up to $35,000 -- can be approved, but just that costs have to be kept under that amount. Our understanding was that if, for example, our actual costs for the rehab came to $20,000 of that $35,000, then we could escrow the remaining $15,000 to use for any future improvements, OR we could even pay it back into the mortgage. If what we have read is correct, then seems that the lender would not need to wait on our bids, she could go ahead and do the loan for the $35,000 max and get us approved on that.

Our concern is that we already have $1000 earnest money in escrow with the title agency, and they are getting anxious over whether we can get our funding. Don't want to lose that $1000 due to some mistake the lender might be making.

Can anyone shed light?
Reply With Quote Quick reply to this message

 
Old 09-27-2010, 05:26 PM
 
Location: Just south of Denver since 1989
11,812 posts, read 34,265,174 times
Reputation: 8930
Get bids now, hurry - no sense dragging your feet.
Reply With Quote Quick reply to this message
 
Old 09-27-2010, 05:33 PM
 
149 posts, read 550,212 times
Reputation: 184
We are in that process -- having initial inspection done tomorrow, and a contractor to give an estimate on solar and plumbing. So, moving as fast as we can ....
Reply With Quote Quick reply to this message
 
Old 09-27-2010, 07:39 PM
 
Location: MID ATLANTIC
8,644 posts, read 22,786,365 times
Reputation: 10461
The bids are vital to the calculations and the maximum loan amount. It's not whatever you want, just not over 35K. There's a precise calculation sheet that they work up, but only after the bids are in.
Reply With Quote Quick reply to this message
 
Old 09-28-2010, 07:23 AM
 
Location: Plano, Texas
1,673 posts, read 6,999,435 times
Reputation: 697
You are just going through the process. Get the lender the information as quickly as possible.
Reply With Quote Quick reply to this message
 
Old 09-29-2010, 01:43 PM
 
149 posts, read 550,212 times
Reputation: 184
Thanks for the information -- what has confused us is that we have definitely seen (on websites about FHA 203k) statements that any leftover funds will be applied as a payment on the back end of the mortgage loan. In which case, seems like the fastest and easiest thing to do would be to okay the loan up to the $35,000 limit. Then again, I'm not a lender

We are moving fast on getting the estimates -- all of the estimates (we're getting 3) should be to the lender by end of this week.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top