203k down to 203b with no cost?I have a friend who says her mortgage broker can get her a FHA mortgage at 5.75% interest. Because she wants a 203k, the broker is telling her it will have a higher interest rate, but as soon as the work is complete, the broker will (at no cost!) convert it down to a 203b mortgage, with a 5% interest rate.I don't see how this is possible. A 5% rate right now would cost thousands to get, nevermind getting it for free. Additionally, it isn't free to refinance a FHA mortgage. The broker says they are so large, they can make deals like this with no cost. I suspect this is a ploy to lure her into a high interest rate mortgage that they will be stuck with.What's your 2 cents?August 04 2009 - US00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe 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.