Saturday, September 27, 2014

Why Should I Choose an FHA 203k Loan?

Lots of good reasons to choose from:
  1. your credit may not be stellar
    • Not a problem FHA has the easiest loans for a borrower to qualify
    • Even not to distant bankruptcy can be overcome
  2. your new home needs allot of work and you can't otherwise get a lender to make a loan
    • Most lenders won't make a loan on a home that has health and safety issues
  3. you would like to be sure your home gets repairs it needs as your spouse hasn't been good at fixing things as they might like to think they were as known from past experience
    • a contractor completes the work in a professional and workmanlike manner
    • the contractor has a timeline they should adhere to
    • you are the boss, the contractor works at your discretion and under YOUR supervision
  4. the home has been sitting vacant for two years or more with a known septic tank issue

What I didn't say:
  1. the loan amount doesn't go high enough...  
  2. the repairs exceed $35,000
    • Common myth based on the great marketing some lenders do that aren't qualified to do the Standard 203k and only do the "Streamlined k" 
    • the limit is based on the county limits for the county your home is located. We have several projects right now that are over $500,000 in construction cost. If you have any problem in figuring out this for your client please call us and we'll provide the answers to your delima
  3. there is foundation work or it needs a new foundation
    • some lenders have an "overlay" where they have decided they don't want to do foundation work - don't use that lender, if you need to know what lender is the best at these loans contact us, as consultants we can share our knowledge and there are some you need to stay clear of.
    • repair or replacement of foundations are commonplace
    • septic tank has been dry for over a year and needs work - not a problem for the "Standard 203k"