Are 203(k) loans still around?

I had a buyer looking at a FHA 203(K) loan.  Of all the lenders contacted, only 1 still did 203(k) loans.  Whats the deal?  What happened to these loans?
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September 01 2010 - Denton
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Answers (13)

Thanks for the input.  I found an officer at Wells Fargo that does 203(K) in our area.  The loan officer has 10+ year doing these loans.  She said they were down to 1 office doing these until just recently.  Now they are up to 4 offices.  Looks like there is increasing interest in 203(K) loans after a dry period of investors willing to backing them.
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September 03 2010
Yes, both 203K's - Streamline k and Standard k are about the only purchase rehab loans available with 3.5% down, low interest rates up to 30 years and assumable.  

Call Leesa Sandoval, National Loan Consultant, Direct [Contact removed by moderator] PrimeLending, 
18111 Preston Rd Ste 700, Dallas, TX 75252

Also, might want to contact a HUD Approved 203(k) Consultant in your area, as they have up to date information on 203K's.

Or email me at [Contact removed by moderator] in Austin, Texas.

 
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September 02 2010
Brian - You shouldn't be having such a difficult time finding someone. There are plenty of lenders in Dallas that still offer it, although I would second Andrew's opinion about finding someone with experience, as this loan does have some moving parts.
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September 02 2010
the lender has to be certified in order to offer that loan. It is still offered but it could be hard finding lenders that are certified.
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September 02 2010
I know they are still available but I don't think there are many lenders willing to take the time to administer these loans - time consuming, just more involved and I don't think many want to be involved or bothered.
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September 02 2010

As a knowledgable Realtor, I have made 5 Referrals for the 203k Loan Program in the past MONTH. So, yes, they are still in existence.

Just this morning I was walking through a foreclosure with a buyer and general contractor going over the $120,000 in repairs and improvements for his $203,000 loan. It goes to underwriting next week.

I will be happy to make a referral to a lender if you wish to contact me regarding it.

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September 02 2010
Case in point!

a 203(K) loan is an FHA Loan. 

The majority of realtors as well as loan officers really don't know the program, which is why it is so important to work with folks that have experience actually funding these loans.
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September 02 2010
Yes they are, and a great option for the foreclosure buyer.  It is my understanding you can get them for the FHA buyer too.
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September 02 2010
Profile picture for gsmith6673
203K Consultant in Mississippi says,

yes, 203k is around and if you or your clients want to keep in touch or speak your mind, offer your suggestions here.
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September 02 2010
Loan Officers tend to shy away as well!

I don't lend in Texas but the 203K loan is alive and well!

I suggest reaching out to Wells Fargo if you cannot find an experineced 203(K) loan officer.  They have specific loan officer that have to be approved to originate them.
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September 01 2010
Yes, and use a loan agent who knows what they are (a dying breed).
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September 01 2010
Absolutely 203K are still around. They actually have been rejuvenated with the influx of foreclosure properties on the market. It's very important to not only have a lender that is experienced with these loans but an agent that understands the process...they require patience (a minimum of 60 days to close) but are a wonderful alternative for those who need to finance versus pay cash for that diamond in the rough. 




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September 01 2010
They're defintely still around. Been around since the 80's. Problem is agents don't understand them very well on either side. 

Cash tends to beat them out due to long closings or buyers not wiloing to pay up front here in Vegas.

Box stores were trying to get in on the action too.   http://www.homedepot.com/webapp/wcs/stores/servlet/ContentView?pn=SV_HS_Home_Renovation_Services&langId=-1&storeId=10051&catalogId=10053 

Start talking to some loan officers or figure out who the loan officer is in your community who is closing this kind of loan. Google something like 203(k) and your city name.
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September 01 2010
 
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