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 04-12-2009, 04:41 PM
 
1 posts, read 4,535 times
Reputation: 16

Advertisements

I am interested in hearing from homeowners who have experience with 203k loans. I'd like to know their thoughts on the process, consultants, getting draws... all the nitty-gritty stuff. Thanks!
Rate this post positively Reply With Quote Quick reply to this message

 
Old 04-13-2009, 07:51 AM
 
219 posts, read 641,254 times
Reputation: 73
We are in the middle of one, were approved based on credit and income, now waiting for the work estimates, which is taking much longer than we anticipated. We have been told once we get the estimates in, then its going to take 45 days to close. So, from the time we first applied, its going to take 60 plus days, but mostly because the contractor we picked has taken over 2 weeks to get us the numbers..

We are doing a streamline for the $35K max plus at the EEM for another $8K since we are doing windows.. We are also doing siding and redoing our kitchen.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-07-2009, 12:04 PM
 
1 posts, read 4,255 times
Reputation: 10
I am also in the middle of a 203k, and I have to say we are in for more than we expected! My friend did one a year ago and convinced me that it was easy if you knew a contractor who would work with you and let you do most of the work yourself.

This was not the case for us. First of all, the money for repairs goes straight to the contractor. If you know the contractor personally and they are willing, they can just take the check and send you the cash, so they don't have to pay taxes on it. But we found that this makes many contractors very uncomfortable. It turned out to take two weeks for my contractor to get us an estimate, and then when it came down to it, he said he let his building license expire, so make sure you verify that up front!! A lot of contractors in my state don't want to pay the high renewal fees for their license because there isn't any construction going on anyway.

To solve this, we just asked for an estimate for the things that were being contracted out anyway, and we're using our tax credits to pay for some of the remodeling we want to do ourselves.

So yeah, all told it's going to take 60 plus days to close completely. We are hoping the seller agrees to this addendum, but they could just take my deposit and run!

My advice? Get the contractor's credentials and get him in there ASAP! Maybe even offer some extra cash to get the estimate out quickly, if you're willing to go there....
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-23-2014, 02:50 PM
 
24 posts, read 77,593 times
Reputation: 20
Were in NC closed on our house in August 2013, we are now at our 6 mo deadline to close the 203k loan, according to FHA Homeowners are not supposed to do any of the work on the write up unless they are approved by the mortgage company.
8 days after we signed the Homeowner/Contractor agreement and while I am living in another state until all the repairs are finished the contractor approached my husband only to do a shady contract on the side, which stated that he will do half the work for all the money. my husband and him had a deal going off to the side that if my husband could do some of the work, the money saved would be applied back to the loan, but that is not what the contract said at. I refused to sign the closing paperwork, and not I have been bombarded by the lender, consultant and the contractor that if I do not sign the paperwork I will be in default of the loan. they would want me to sign off on government documents and steal 20,000+ of my money then do the right thing. The contractor has put a lien on my house because I will not sign off on the paperwork, Don't want to discourage you but never go off the beaten path stick to the contract. We made the mistake of trusting our lender to do the right thing, and make the contractor do the work he was contracted to do. But he sent me a nasty email telling me I was in the wrong? This is the ballpark of what happened; the mortgage lender lined up a contractor to do the work but he never showed up, so the consultant recommended his buddy to do the job. I see now that they are working together to scam people.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-23-2014, 11:00 PM
 
3,805 posts, read 8,669,060 times
Reputation: 4968
If you can do 5% down, there are Conventional Rehab loans that allow for more renovation and lesser PMI, which also actually expires eventually.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 01-20-2015, 05:33 AM
 
Location: High Bridge, NJ
3,858 posts, read 9,205,958 times
Reputation: 3364
I know this is an old thread, but I am just starting the process of working with a broker that specializes in 203K. We are not looking to purchase new, but rather do a major renovation of our existing home and then roll the cost of the renovations/existing mortgage balance into a new loan. I went over our situation with him:

-Not a lot of equity in home
-Need more space for a growing family
-Doesn't make sense to move
-House is a ranch that can easily accommodate a second story addition

The broker said that everything sounded good and that there didn't seem to be any red flags, so I'm assembling documents and getting them sent off today. I have plenty of construction experience, but the broker requires a licensed general contractor, however, he did say that whatever I work out with the GC (I'll be using a friend of the family who is in the business) with regard to doing some of it myself, that it's fine with him. They trust the GC's judgement because in the end the lender will come down on them if something is not done or not done right. All that said I have seen some horror stories, so I want to get any feedback I can from folks who have been through the process.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 01-20-2015, 07:48 AM
 
24 posts, read 77,593 times
Reputation: 20
Stick to the contract. Knowing your GC is a great thing. Our home is over 100 years old, we are at the end of a year long battle, we lost a ton of our renovation money due to the Lender, 203K consultant and the GC all being friends and scamming us.... the story is a nightmare, make sure you are in control all the way, "do not sign anything that is not done to your satisfaction", and if you have Lead issues, or asbestos on or in your home, these men have to be certified to do the work, check the Health Hazard website in your city and see if the workers are certified.
We had a quote that we all agreed on (100% work for 100% money) but 8 days after we got our money in the escrow account, the GC slid (behind my back and the mortgage companies back) my husband another quote (50% work for 100% money), the GC planned this scam all along. Check with your mortgage company, because here in NC they do not allow you to do any work that is on the work write up. If you do the work, the GC can still take the money if it is on your contract that he is supposed to do it.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 01-21-2015, 03:44 PM
 
165 posts, read 328,093 times
Reputation: 84
NOt sure why people keep pushing FHA 203k vrs 5% conventional.
Rate this post positively 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.

© 2005-2021, 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