Profile picture for mprssdbyu

203K loans in eastern NC

I have been speaking with a loan officer in Ca who told me the interest is higher for a FHA 203k loan because of the work involved. He is supposed to be an expert in this type of loan because that is all he does. I have done all the work in finding contractors, etc to do the work.  Is this true and if so, does anyone have an idea of the difference in interest rate between a straight FHA loan versus a 203k FHA loan?
  • November 08 2013 - Raleigh
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (10)

I work in Eastern NC.  I would be more then happy to help answer any questions you have if you are still trying to get it figured out.
  • February 06
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Have you considered a conventional renovation loan?  Your down payment would be higher than FHA however you would avoid paying pmi.  If you would like to discuss please contact me via my profile.
  • November 18 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Which bank are you dealing with?
You should outline the fees here so commentary can ensue.
I can help you from SC, if needed.
  • November 15 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Make sure to ask about the supplemental origination fee that many lenders charge on 203K loans. 
  • November 15 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for mprssdbyu
Thanks for all the input! I was concerned it woud be much higher which happily isn't the norm according to those in the know about mortgages.
  • November 15 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

The interest rate is higher because it is a riskier loan. There will typically be a 0.25% bump to the interest rate. This number will vary depending on the lender's margins and how familiar they are with 203k loans.
  • November 15 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

1/8 to 1/4 pt more is typical. You definitely want to be working with a mortgage banker who specializes in this type of loan and who has recently done projects in your same state. The rate is ultimately less important than your successful completion of your project.
  • November 14 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

.125%-.25% depending on the days pricing.  You want to work with a lender that will handle the disbursements of the repair escrows as well.
  • November 08 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

What rate were you quoted? You need to find someone on the East Coast, at least. Everything cost more in CA. Contact me through my profile, and I may be able to help. Are you doing a streamline or full 203K? There is more work for a loan officer but it isn't drastic. The act of finding contractors is not rally the extra work he's talking about. There is extra paperwork processing and the contractor approval process, if necessary is time consuming from LO's POV. I can get you a second opinion quote on the loan. I've done renovation loans and renovation contracting using 203K loans, recently. It is slightly easier than it used to be.
  • November 08 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

203k rates are typically higher but only by about a quarter of a point. Find out what the rate would be on a standard FHA loan and compare the 2 with him. 

[self promotion deleted by Zillow moderator.]
  • November 08 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.