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Need 203K

Perfect neighborhood, but house won't go FHA. MINOR fixes needed. Who will do a 203K for $55,000? My credit is really good averaging 700+. First time buyer. Can put 10%.  Having problems with Morgage lenders not wanting to do the extra paper work for the 203K.
THANKS!
  • October 15 2010 - Midtown
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Answers (9)

Best Answer

You really need to find a Team Player. Start with a good consultant, here are three names that will treat you right. Michael Faust at (917) 345-6141 Curtis Pender at (917) 297-5333 or Ron Vinson  at (212) 961-4005. They are all great guys and you will be well
served by any of them. Andrew Adams was absolutely right about the Wells
Fargo group as they have the best record for paying the contractor when it
comes to the draw payments. I've had excellent results on that end. Now we
need to hook you up with a "Renovation Expert" at Wells Fargo, while there
are quite a few good ones I can recommend Nick Skudlarek at 
800-778-6843 x 77730 who is one of the few stationed at HQ that does
loans all over the USA. When you dial his extension a robot will try to talk 
to you, just say "I don't know it" and it will send you to NIck's phone.

  • October 16 2010
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"at only a need of $55k of borrowing one may save sufficient cash to not need to borrow anything."

It may not be tough for you to Save 55K but for someone whose housing budget is for a $55,000 home, That could be close to impossible.  Think about it they are likely making less than $1,000 per month.

It would take 5 years without spending a penny to get close.

One may but one whose budget is less then $500/month for housing will find it a little more difficult than one that spends that on a car!
  • October 19 2010
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Profile picture for blue screen exile
If it only requires "MINOR" fixes, most of the fixes will probably not be required for occupancy, and those that are should be able to come out of the person's pocket.

As already mentioned, the "double wammy" means one will not get the best rates, and rates aren't going anywhere for a while.

Even if one misses them, at only a need of $55k of borrowing one may save sufficient cash to not need to borrow anything.

Even if one has to pay 10% for $10k, they are still ahead of paying 6% for $55k plus loan initiation fees of $7k.
  • October 18 2010
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Pasa,

Not bad advice but depending on the condition of the property purchasing a property in need of repairs, usually means you can't get conventioanl fincancing.

Renovation loans are the only option for these properties and the difference in rate between 640 and 800 is nothing with teh 203K loan.

Waiting to build up reserves is not a bad idea, but it will not help on the rate front and in fact could hurt if the rate enviornment changes and they rise.
  • October 18 2010
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Profile picture for blue screen exile
Ever thought of saving up for a year or two so that you can pay at least 20% down, and can do the repairs as you go from your income without borrowing?  It would cost you substantially less.

Home prices are still going down, and will remain flat for a long time after declining.  Interest rates will not being going up in the near future either with the government looking for ways to lower the rates even more.  And there certainly won't be any shortage of foreclosures.  There is a huge backlog of inventory just waiting.

And if your FICO scores are only averaging 700+, a little time and careful planning can possibly get it up to 760+, lowering your rate and fees even more.  Better yet, maybe you can even pay cash and completely skip the fees and interest?
  • October 18 2010
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BRIAN THAT'S SPAM
  • October 17 2010
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[Deleted for spam]
  • October 17 2010
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Mike...Wells is good but they are also the most expensive..
  • October 16 2010
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You have a double Whammy!  A more complicatde and time consumer product and a low loan amount.  Most brokers will not be able to do the loan because they cannot be cpompensated enough for the time it will take to originate and close the loan.  I would suggest calling Wells Fargo or a local lender.
  • October 15 2010
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