Saturday, January 10, 2015

Stopped in to see a Realtor today...

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This Realtor had recently had a 203k fall apart due to the loan not going high enough for the construction which was about $40,000.

Wow, he had called around to a slew of lenders and none of them could do the loan... 
NO ONE told him they were only approved for the "streamlined k" , soon to be renamed the "limited 203k" and not the full or Standard 203k. 

These lenders ARE NOT TEAM PLAYERS... the buyer was not served by them, they should have been up front and confessed that there is another product or two out there that would meet the client's needs. Yikes!!! 

When I walked in he called over another agent in the office and the three of us talked. They had great questions and the next time they get a sale in this area they will call me for the name of a lender who does the Standard 203k. 

Is there a limit on the amount of renovation for a 203k loan? No, other than the maximum loan amount for the county.

Is there a limit on the amount of renovation for a FannieMae HomeStyle loan? Yes, 50% of the purchase price. 

We went on talking to find out there is a casino in the area and I asked if they had many native Indians seeking to purchase real estate... the answer was emphatically "YES, Why?"

I then told them about the FHA 184 program for native Americans... 2.5% down payment, works just like a 203k but there is a unique aspect that this client base can build a new home on virgin land if they want to.