Zillow Advice: Buying Foreclosures - lender problems with 203k program

If the "builder" is doing ...

Sun, 09 Aug 2009 12:34:00 GMT

If the "builder" is doing the construction to complete the home, they may have to offer you a warranty on the work they perform or go with another contractor to complete the house. Sounds like a reasonable request from the lender.

That doesn't make much sense. ...

Sat, 04 Jul 2009 18:39:00 GMT

That doesn't make much sense. Make sure your both referring to the same type of warranty.

Clarify with your lender ...

Sat, 04 Jul 2009 12:27:00 GMT

Clarify with your lender exactly what they want. It is difficult to navigate the 203K loan, with very few lenders doing it--remember, they are taking a chance on this home having the value--the value of their loan is dependent on guaranteeing that the work outlined in your contract with a home improvement company is fulfilled. The builder will not warrant, but you might get a home warranty through AHS (american home shield) or old republic home warranty--look them up on the internet and learn more about their coverage. Ultimately, you must fulfill the requirements the bank sets out for you if you want to borrow their money. Or find who else does 203K loans in your area--in our area there are only 2.