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Homepath and FHA 203k

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derrick Joined: 09 Nov 2011 Posts: 1 1.42 Dollars($)	Posted: Wed Nov 09, 2011 4:52 am    Post subject: Homepath and FHA 203k Like 0 Dislike 0 I am looking to purchase a Homepath property to occupy as a principal residence. The property is in poor shape, and it is eligible for a Homepath renovation loan. However, we estimate that it will take more than $35000 to bring the house to code. The property is in Georgia. I have two questions: 1. Because it is a FNMA property, my agent tells me that it is exceedingly difficult to deal with FNMA and probably won't get much cooperation from them in the rehab process if I get a 203k loan. Has anyone ever used a 203k to acquire and rehab a FNMA property, and how difficult was it to deal with them? 2. Would it be possible to acquire the property with a Homepath loan so that I would control it, and then immediately refinance that loan with a 203k standard mortgage to rehab it? Perhaps a simultaneous closing scenario, or a refinance within 1-2 months of the Homepath closing?
jameshogg Joined: 20 Dec 2005 Posts: 10477 Location: Nevada 990.06 Dollars($)	Posted: Wed Nov 09, 2011 7:15 pm    Post subject: Like 0 Dislike 0 Hi derrick, Though I don't have a personal experience working with them, I will still suggest you to contact FNMA and negotiate with them so that they help you rehab the property. If you can properly convince them, then they will allow you to do so. I don't think you will be able to refinance a loan immediately. You will have to wait for 6-8 months in order to refinance the loan after you have taken it. Thanks
chrisgummerson Community Expert Joined: 29 Apr 2010 Posts: 704 Location: La Palma, CA 9.98 Dollars($)	Posted: Fri Nov 11, 2011 11:40 am    Post subject: Like 0 Dislike 0 The limits are the limits. So if the true cost to improve the property exceeds the limits, then you would not be eligible. As the costs needs to be allocated prior to funding your loan. All costs to complete work need to be in bid form and submitted to the lender. Your best bet is to purchase another property, or make less repairs to the home. _________________ Chris Gummerson Bay Valley Mortgage Group bayvalleymortgage.com 714-367-5125

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