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Always ask your lender who services the loan, if it is BofA then find another lender. Ask you loan officer how many 203K loans they have closed and ask them if they offer both the full 203K and the streamline. Experience is vital on the 203k. Do your research before you apply.
. . .Ask you loan officer how many 203K loans they have closed and ask them if they offer both the full 203K and the streamline. Experience is vital on the 203k. Do your research before you apply.
I can't agree more with JB... Learning by trial-by-fire will not work. an experienced LO is the only way you are going to have a successful loan.
Glad to know that we're not alone. I've been trying to close on a 203k with M&T Bank since July without luck. And I went them specifically because I'd heard they we faster than BOA and Wells Fargo! We have spotless credit and could qualify for a significantly larger loan, so we do not understand the holdup. This has been terribly frustrating. I would be interested in hearing what others learn re: legal recourse. I'm going to be furious if I'm out $1,500 for inspections etc. just because the bank takes too long and my contract expires...
I've been trying to close on a 203k streamline since July myself. I'm trying to buy a HUD house. I've emailed and called with no luck.
Each extension is $375 + $25 wire transfer fee. I've had 4 or 5 now.
It just seems outrageous that there is no recourse to the consumer on these kinds of activities. I thought I was going to closing in the first week in Oct only to find out the loan was just getting to underwriting.
I am an approved 203k contractor that is getting screwed by Bank of America, which also happens to be the bank i do all my corporate banking with. I am owed 10's of thousands of dollars for work completed on the homes and the processing center is no longer taking phone calls. In the meantime, I owe my creditors money, i cant pay my families personal bills, and I don't know when it will be resolved. I basically worked about half a year for nothing. Thanks BOA!!
CTC - everyone with a 203k with BOA is in the same situation. Stay calm and don't take out the frustration on the homeowner - they've already paid the money to BOA. And most advisably - don't file a lien as it will only slow down the process even more. At that point, you'd be lucky if you get any money at that point and will only result in a much worse situation for everyone. Sit tight, they'll come through. We finished ours recently... was supposed to be a 3 week project and took nearly 4 months due to BOA delays. But, all the money came through. And yes, we used BOA/203k approved contractors and inspectors
I am a 203K Consultant and the amount of misinformation here (original poster) is off the charts. Firstly, I work for the borrower and protect their interest. When I do an inspection, often the borrower has a contractor on board and a price in hand. I do a reality check for them: Has the contractor included everything? If not, then I insist they add it BEFORE the closing so we avoid costly change orders. I recently looked at a house in Dorchester, MA that was bid on without ANY electrical costs included in the price - unacceptable. These 1st time buyers went back to their GC and asked him to add the needed costs for re-wiring the new bath and kitchen which - HELLO - triggered an upgrade for all the fire protection systems and the main electrical panel. So an ignorant person may say "Well the 203K consultant came out and now my project is costing more" you should realize you actually got something for your fee: good advice and a better project with cost controls UP FRONT.
I am a construction PROFESSIONAL. I do not negotiate my fees either. I have rehabbed over 10,000 housing units in the MA housing market and I help people all the time who need to make good decisions about borrowing money under the 203K program.
Hoping for some help here. I want to buy a 350K house that needs roughly 200K of work to rehab. I have 53K in savings. I cannot afford 20% down on the purchase and 20% down on a construction loan. My friend mentioned the 203K loan. Looking around the FHA site it says the FHA loan max for my county is 410K for a single family home. Would it make sense to take the full 410 loan with 3.5% down to purchase and rehab 60K of the house? Then obtain a 140K construction loan to finish it off with 20% down. After it's all done, can I roll them all into 1 fixed 30 year loan? I'm confused. Am I missing something? Any help is greatly appreciated.
You would only be able to go with the 410K loan if the home would be habitable with just 60K of work (and within HUD Minimum Property Standards).
Construction perm financing is pretty lean in my area and most require 20% down with 720+ credit scores. Home equity lines are also a pretty tough way to go......again, the banks are looking for equity before they will loan.
Thanks. I should have clarified that the "200K worth of work" I was referring to above went well beyond making the house habitable. It was making it a completely finished gut-rehab (new everything). It's habitable right now, with electrical, plumbing, etc. all working. But my 200K figure would account for entirely new mechanicals.
My house is supposed to be done by the end of this month. I have ran out of funds, the roof stated to leak very badly after i closed on the house. once those repairs were made i was out an additional 2K. All of the duct work in the house had to be replace due to the roof leaking for years on the plenum.
My loan took over 90 days to close and the broker I used sat on the monies an additionl 45 days before selling the loan to Bank of America. BofA took two weeks for my first draw putting me behind two months out of the six to complete the rehab.
I am not going to be able to afford the carpet so i was going to paint the floors, does anyone know if this will pass a HUD inspection. Also, I bought different appliances than was listed on the inital bid is this too going to be a problem?
Who do i need to call and how do obtain my final draw so i can pay off the contractors and complete the rehab. any help would be appreciated this has been a nightmare and i want it to bo over and done with...
Thanks..
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203K Consultant Weighs In
