HUD's 203(k)
Has anyone received one of these loans? Or have any information about the process for obtaining a 203(k). Recommendations for a Lender to work with? Pros/cons of a 203k? Thanks!
Has anyone received one of these loans? Or have any information about the process for obtaining a 203(k). Recommendations for a Lender to work with? Pros/cons of a 203k? Thanks!
WTF BROWNSTONER????
Why would my posting be removed when all i did was provide the name & number of a 203K expert, from Countrywide??
This site is nothing but CENSORED… THE WORST EXAMPLE OF FREE SPEECH…
Really
I didn’t end up doing a 203(k) but looked into it. The cons are 1. you have to pay an FHA-certified consultant to review your project and to approve work prior to funds being disbursed. There aren’t very many of these guys in NYC and you essentially have to pay them before they see the project which means you’re paying them before you know if what you want to do is compatible with FHA requirements 2. FHA has certain requirements that might not be in line with your plans or at least your immediate plans. For example they require a certain amount of cabinetry in the kitchen, lead paint and asbestos abatement/removal, etc. 3. Some of the loan fees from the FHA-approved lenders were very high 4. interest rates offered were a bit higher than going market rate 5. They require you to fill out detailed budgets and take classes 6. There’s a loan max. This includes the amount you borrow to go toward the purchase price plus the cost of the renovation/repair work. When I was looking at it, I think the max for Brooklyn was $729k.
Pros are: 1. as little as 3% down, 2. loan to cover repair/renovation work at mortgage rates 3. it allows you to buy properties for which you would otherwise not be able to get a mortgage because they would be deemed uninhabitable by a traditional lender. For example, non-working plumbing, etc.