FHA 203K For Renovation?
We are considering using the FHA 203K to buy/renov house because the numbers fall in the right place….I have hired contractors to do work before but I am wondering if any will actually go through the bureaucracy to get these funds; with the pay-out schedule and holdbacks and all. Welcome any info or experiences, thank…
We are considering using the FHA 203K to buy/renov house because the numbers fall in the right place….I have hired contractors to do work before but I am wondering if any will actually go through the bureaucracy to get these funds; with the pay-out schedule and holdbacks and all. Welcome any info or experiences, thank you.
To update here–the seller’s agent unequivocally said “no FHA financing”. When we asked why it mattered–money is money that the sellers would receive–the broker told us FHA loans are taking 9 months to close. Is this actually possible?
My understanding is they do take three months to close. And any FHA loan can be “risky” for the seller because the government appraiser can require the seller to make certain repairs. However, it’s not that risky, and the seller can also back out. Other than that, they should not be “problematic.” You’re not likely to be turned down for the loan.
I didn’t think either that the sellers would care….but this is the 2nd property this broker showed us where he now says there is “concern” about that type of financing. Our feeling is he is telling the sellers these loans are problematic (read: can take long time to close) and steering sellers to what he hopes will be buyers with more cash than us. Need I say we would never do business with him again if this doesn’t come through?
The sellers shouldn’t care much these loans are common. The closing date is the only concern.
Thanks for the suggestions…now the problem is getting the sellers to agree to our seeking this kind of financing. The RE likes to think there are other people with more cash (there may be).
I went fairly far in buying a house that was going to require a FHA renovation loan and spoke to a number of contracters who were willing to work within the parameters or had already done so. It’s not much different from a construction loan, with the payout coming from the bank and having to work on a set schedule. Off the top of my head, Beer, whom I found on this forum, had done FHA projects before. John of “Russ Bros” who I think has a google-able website was also willing to do FHAs, and so was Nick of Transcend (also found here). So I don’t think it will be a problem. Good luck.