Profile picture for user6759200

HUD home 203k loan and repair escrow Columbus Ohio

How does this all work?  I've been approved for a loan that gets me about 80k.  The home I'm looking at has a 4k repair escrow and a 6k cosmetic one.   I was considering bidding a little under and going for the 203k to try to make the repairs.   So here is my questions.

1)  I'm not sure if I can roll the repair escrow into the 203k.   But if it has all the problems listed then I'm sure I'm going to find more when I go in for a showing.  Is it possible?  

Answering this question will not only help me with this house but with future bids that I'm placing.  I'm having a hard time finding homes in decent areas with a mortgage I can afford to pay comfortable that or not hud homes or short sales. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
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.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 26 2013 - Southwest
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (2)

Best Answer
With a 203k loan you can borrow the purchase price PLUS up to $30,000.00 in repairs or energy efficient appliances.

It doesn't matter how much you "bid" for the house, you purchase it for the amount you feel is fair and that the seller agrees.

After you win the offer/contract of the home, you'll then get a contractor out who will give you a quote for the repairs/upgrades you are looking to make.

The contractors bid plus the sales contract (purchase price) is used to provide you a loan to purchase and repair the property you're looking at.

Oh and FYI an escrow repair is much different than a 203k loan. Most of the time escrow repairs are not allowed OR if who you are working with will allow an escrow holdback for repairs it's usually limited to less than 5% of the value of the home or $500. You're not going to get to do an escrow holdback for the $10,000 in repairs.  Not in my experience any way.

If you need help with this because your current lender doesn't do a 203k loan let me know. I can help, I have the loan product and I've closed on this type of loan before. 

Best of luck to you in the purchase of the property.

Kimberly Lawson
T: 888-659-3848
kimberly.lawson@fofpmail.com
OH.LO.004495.000 NMLS: 5601

First Priority Financial
748 N Court St Ste 201
Medina, OH 44256
NMLS: 3257  MBMB.850147.001
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
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.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 30 2013
Profile picture for Paul Welden
Yes, on a 203k, you can increase your mortgage amount to include the cost of renovations and other 203k required fees.

There are 2 versions of the 203k:

Streamline 203k - rehab $0-$35k (Mortgagee Letter 05-50) and no structural modifications (not all inclusive)

Standard/Full 203k - rehab $5k-FHA max loan limit and does permit structural (not all inclusive)

Get a 203k Feasibility Analysis from a HUD approved FHA 203k Consultant and then contact the Certified 203k Contractors in your area for the bids/estimates/proposals.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
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.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 06 2013
 
Related Questions
HUD home 203k loan and repair escrow Columbus Ohio
Profile picture for Paul Welden
Latest answer by Paul Welden
May 06 2013 | 2 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 1437 Old Hickory Dr, Columbus, OH Home For Sale
    1437 Old Hickory Dr, Columbus, OH 43223

     For Sale: $49,000

    • Beds: 3
    • Sqft: 1535
    • Baths: 1.0
    • Lot: 5662
  2. 1072 Hardesty Pl W, Columbus, OH Home For Sale
    1072 Hardesty Pl W, Columbus, OH 43204

     For Sale: $16,000

    • Beds: 2
    • Sqft: 936
    • Baths: 1.5
    • Lot: --
  3. 2358 Woodbrook Cir S # 159, Columbus, OH Home For Sale
    2358 Woodbrook Cir S # 159, Columbus, OH 43223

     For Sale: $15,840

    • Beds: 2
    • Sqft: 960
    • Baths: 1.0
    • Lot: --
 
 
 
Sign in with Google