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ezmortgageloanz · Posted: Sat Aug 04, 2007 8:25 pm Post subject:

I'm sorry for returning late to the party---here are some general guidelines for the 203k program:

- The 203K loan allows for the purchase of the property + repairs + 6 months of mortgage payments + allowable closing costs (see below for further details) using just 1 loan(in most cases, this mean 100% financing and no money down).

- Rate doesn't change after rehab is completed; the same rate will apply for the entirety of the loan.

- Property must have a min. of 5,000 in repairs; here is a list of just a few of the allowable repairs:

Changes for improved functions and modernization
Elimination of health/safety hazards
Changes for aesthetic appeal
Plumbing, heating air conditioning, and electrical upgrades
Well and/or septic repairs
Roofing, gutters and downspouts
Flooring, tiling and carpeting
Energy conservation improvements
Major landscape work and site improvement
Access for the disabled
- You can act as your on GC (general contractor) or appoint someone else to do the work.

- Finance up to 6 months of mortgage payments into the loan. Other costs that can financed into the 203(k) loan are:

* Contingency reserve (10%-20%)
* Up to 6 months PITI mortgage payments
* Permit costs
* Consultant fees
* Inspection and title update fees
* Architectural & Engineering fees (if needed)

- The 203K loan requires a FULL DOC submission
- The 203K loan can be used for the purchase/refinance & rehab of 1-4 unit owner occupied properties.
- The 203K loan is offered in 15/30 YR FXD & 1 YR ARM options.
- The 203K loan doesn't come with a prepay---the homeowner can opt to do a FHA "streamline refinance" after rehab/renovation is complete to take advantage of better interest rates/lower monthly payment (A FHA streamline refinance doesn't require the verification of income/assets again nor does it require a new appraisal).

The 203k loan really stands out amoungst other options (namely CTP loans) and a comparison in value/features/benefits favors that of the 203k...

Regards,

Scott Miller

BrianDelaCruz · Posted: Sun Aug 05, 2007 7:50 am Post subject:

Hey Scott,

That's absolutely cool; it doesn't matter if you're late. You gave some time to the community and shared your knowldege - I think that's going to help Roger a lot.

Thanks,

Brian

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Scott,

It is really good that you have given so many informations on the 203k program. It is surely going to help Roger.

Caron · Posted: Wed Aug 08, 2007 4:54 am Post subject: RE: request for quotes

Hi Andrew,

I have read through the previous posts and I feel that in your situation, going either for a construction to permanent loan will be a good option. Even better would be an FHA 203K loan. Now, if you are interested, you can look out for a lender within our community itself.

Our community has a group of lenders offering different types of loan programs to people of varied income and credit status. So, you can send us your request for mortgage quotes. As soon as we receive your request, we shall pass it on to our community lenders and they will try their best to process your request. If the lenders' profile matches with your loan requirements, then they shall contact you soon.

Good luck Smile

rogersmith52 · Joined: 14 Aug 2007 Posts: 3 1.88 Dollars($)

Hi guys,

I am roger25 who needed your advice on a rehab loan..so here's my story so far...i did talk with some lenders offering construction loans but could not qualify for the loan..i requested for quotes here and some lender called me up. So, we're meeting tomorrow ..and i hope something positive turns out. Smile

I'll update you guys on what he's saying about the offers i can probably get

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Roger,

Welcome back to forum.

Hope this time you will get a positive response from the lender. Please feel free to ask and update us on what happens next.

All the best!

rogersmith52 · Joined: 14 Aug 2007 Posts: 3 1.88 Dollars($)

Hi guys,

I did meet the lender and got pre-qualified. he's offering a 203K loan a fixed one as i'd like to avoid an ARM as of now. Is that ok? and if i am getting rates, say 6.5%. is that ok?

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Rogersmith,

It seems nice that you got pre-qualified for a 203Kfixed loan. Now as you will know the fixed monthly payments on the fixed rate loan, you will be able to plan a fixed budget and proceed accordingly.

And the 6.5% rate that you have been qualified for seems to be quite ok if compared with the current market. For your information, the present interest rate for 30 year FRM is 6.62% and for a 15 year FRM is 6.30%.

rogersmith52 · Joined: 14 Aug 2007 Posts: 3 1.88 Dollars($)

But larry are these the national rates? because i am in texas. So what are the rates there?

Guest

In Texas the 30 yr frm is presently going at 6.23%

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Rogersmith,

The rates that I've mentioned are the rates that are presently going throughout U.S. So, you can be sure of it.

Mike8 · Joined: 31 May 2009 Posts: 12 5.27 Dollars($)

Hey everyone now it is June 2009... and the FHA maximum mortgage amounts have increased dramatically. In high cost areas the maximum loan limits through the end of 2009 will be $729,750 for a SFR and over $1.4MM on a fourplex, very high cost areas is 1.5 x that amount. Not all areas are that high and it does depend on the county or parrish your property is in. Go to

https://entp.hud.gov/idapp/html/hicostlook.cfm

and input your county info to see what they are in your area. M

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