Need Help! 203K Streamline Info/Lender in Pittsburgh, PA (loan officer, pre-approved, foreclosure)

[rcoll]

I've been pre-approved for an FHA Mortgage and I've looked at 40 homes, one at the beginning I was interested in - but it would not qualify for FHA as it was an 'as-is' REO property that needed some repairs. My agent mentioned the 203K loan and after doing a little research via the internet I contacted my mortgage broker to gain more information.

He wasn't thrilled with the 203K loan. In fact he kept telling me most homes would qualify for FHA or the seller would fix the issues. I informed him I had looked at an 'as-is' property and that I did not expect the Bank to fix anything and there would be FHA issues.

It was like pulling teeth. I could feel him fighting me on the 203K loan. I also felt I knew a bit more about the 203K then he did. We left it as we'll wait until the time comes.

I didn't wait - I did more research. And I found the 203K Streamline. From what I read it was perfect for what I wanted. I could get the FHA issues resolved, some improvements - carpeting, appliances, and have my own money left over to cover the window treatments, painting, etc.

And Friday I found a home I am really interested in - its extremely low priced - but has a number of major issues. It needs a new roof, electrical system needs upgraded, kitchen and bathroom work, well its a foreclosure and needs a lot. My guess is about 30,000, 25K being qualified for the 203K Streamline. But that's just a good guess.

Still adding my max offer with the $27k (with Contingency) repairs, I'm well below my pre-approved amount - and the total loan amount is still a little below (over 10K) the current market value.

Now my problem. My real-estate agent's 'mortgage guy' told her the home I was buying had to already be a 203kStreamline home. Now that's a new one to me - I have never come across that with all the research I have been doing. Granted a lot of my info came from the internet, but I didn't read that on the HUD site either.

So my 'mortgage guy' and her 'mortgage guy' seem to be nudging me away from the 203K Streamline. And now after 40 homes I've found one that I'm interested in - they are nudging me away from it.

Oh yeah, I'm planning to live there. I'm not trying to flip it. But what I'm trying to do is to get the best home, in the best location, that I can afford. And so far its been the REO and HUD properties that seem to me to be the best value.

So, anyone know of any mortgage broker in the Western PA, South Hills area that can do 203K Streamline mortgages?

Thanks in advance!
Bob

[ShanetheMortgageMan]

My real-estate agent's 'mortgage guy' told her the home I was buying had to already be a 203kStreamline home.

That is an odd statement to make, "already be a 203k streamline home"? Were they saying the home's MLS listing needed to say 203k loans accepted? I'm scratching my head on that one.

A few keys to a smooth 203k loan process is making sure prompt and professional contractors are chosen, paperwork is provided immediately, and your agent has done a good job with their value estimate of the home "as completed".

You can find a list of lenders approved to offer FHA 203k loans at HUD FHA Lender List. Make sure to select the 203k button.

[rcoll]

Originally Posted by ShanetheMortgageMan

That is an odd statement to make, "already be a 203k streamline home"? Were they saying the home's MLS listing needed to say 203k loans accepted? I'm scratching my head on that one.

Yes, so was I. Scratching my head I mean.

The only thing I could think of was that her 'guy' was talking about the 203K Streamline refinance repair loan - where you have to have an existing FHA loan to refinance it under a 203K Streamline. He may not be aware that you can also purchase a home on an FHA and add in the 203K streamline repair costs to the FHA loan.

From what my agent tells me - her 'guy' has done a 203K loan. But I am not sure if he has done 203K Streamline loans - I don't think so, because my agent wasn't even aware there was a difference.

And thanks for the info and the link - it looks like that can help me out a lot.

Thanks again!
Bob

[ShanetheMortgageMan]

You are welcome. "Streamline" can relate to an FHA refinance, and so perhaps the loan officer through a "203k streamline" is the same. A good sign that there could be some issues.

[nancy361]

rcoll, im in the same boat...seems all the house out there in price range, are REOs or short sales or AS IS and wont pass FHA criteria and seller wont fix it, so its catch 22...no wonder all these homes go to investors or just sit, cause most people want FHA and if house and seller dont meet guidelines, you cant buy it....I too looked into 203K still am.....2 types, 203K for major structural and all else, termites etc, streamline only goes to 35K and house cant have structural issues....and you have to be living there and can go FHA and roll either loan into the mortg.....BUT my mortg advisor did same thing to me, in that he wasnt sure about it and how it worked, so tried to steer me away from it....cause they want the sale .... well, if the only homes i find are these types and i cant get FHA, then what else is there to do?? I am approved for conventional too, even if i put 5-10% down, id still need the money to fix house up.. and I was told that conventional mortg have criteria to follow as well, in order to get that type mortg.... so damned if u do and damned if u dont....thats why investors swoop in and get these houses for a pittance cause nobody else can get them........

right now i found a house its a regular listing, any type financing, but its all original, 60yr old house never UPDATED...has orig. windows, kitchen is small, it functions but needs updating and bigger, bath is good size but needs updating, dont know about heating system....Im sure orig owner repaired things, has 100-150amp electric, just not updated.. needs painting and all...its clean and empty and nice just all original.....So im thinking about the 203K too so i can use that money to bring some things up to date......my realtor referred me to a guy he works with who does all this... I have a budget limit too. and given home price and what i could get for what i offer, and my budget, not sure how much id have to do the work, maybe 20-25K......i posted today about should i go that route or not....so i get where you are coming from......read some posts here too, and seems lots of people are having issues with it....BoA, problems in getting money disbursed, contractors , fees... so im not sure if i want to do it or not.....Id NOT be going thru that bank though....keep us updated

[rcoll]

Hi Nancy,

Thanks to the link ShanetheMortgageMan posted - I did end up finding two lenders in my area that handle 203K and 203K streamline. PNC would not go for the 203k Streamline if mold was an issue, and this home may have some mold.

West Penn Financial Services also handles both 203K and 203K Streamline loans, but they only do 203K Streamline Loans when there is only one issue - like if the roof needs replaced. My long list of repairs prevents me from obtaining a 203K Streamline loan from them. Their reason - they would prefer an experienced consultant handling the project when multiple contractors are involved. It lessens the liability for them and myself as well.

I'm checking the house out again Wednesday, this time with an electrician, an 'amateur' home inspector (my brother hes been through all of this - so its just for a 2nd set of eyes) and I hope to have a Mold inspector - who will tell me if there is mold, what steps he would recommend to stop the mold - ie fix gutters, install french drain, etc as well as an estimate to get rid of the mold if it is mold. I'm also grabbing a mold test kit from Lowes - so I can determine if it is mold - if it is toxic.

I do know some investors have looked at the property and are interested - but I have some time yet before they can put a bid in.

So it looks like I have some more research to do - I did most of my research on the 203K Streamline - and now it looks like its going to be a full 203K to obtain the house.

Hope that helps you.

Bob

[rcoll]

Just wanted to update everyone that Victorian Finance also will do both 203K and 203K Streamline.

I also checked out on the BBB Victorian Finance - it has an A+ rating, but has only been accredited since 2/2011.

West Penn Financial Services also has a BBB rating of A+ and has been accredited since 1986.

As far as black toxic mold goes - the black 'mold' or whatever is on the walls and floor is not black toxic mold. I discovered the black toxic mold can not grow on concrete - and the issues I saw in this home were on cement blocks and a cement floor.

[Ratchmorg]

Has anybody gone through with their discussed 203k loans? What contractor did you use? I want to do an FHA 203k streamline in castle Shannon and we are approved through west penn... Just need references for contractors!!