Any experience with FHA 203Ks?

[IndyGunworks]

Anybody have any real knowledge or experience w/ these kinds of loans, if so please fill me in on some of the details either good or bad.

 

[ROLEXrifleman]

Better make sure your inspector and you are on the sane page as far as what they think things cost and what reality is. If your inspector is good it is fairly smooth process.
Have money in reserve if you don't want to wait on things, this will get refunded to you.


And remember, the items you want repaired/replaced must make the home appraise for the loan amount.

 

[ROLEXrifleman]

Oh, and don't forget to make sure your contractors fill out the paperwork properly for the lender! That's a pain in the ass!
Also, make it very clear to them they will be paid 90% of the total until the last renovation is made then all the contractors involved get their final 10% of the agreed maximum allowed by the vendor for each particular job.

Who's the lender?

 

[IndyGunworks]

fifth third if we go streamlined, but i am still trying to find someone who is willing to do a FULL 203k and has experience w/ them. Fith third will only do the streamlined, but we are looking at moving an interior wall which eliminates the streamline version of the program.

 

[ROLEXrifleman]

Look at Wells Fargo. They knew their stuff and everyone on there end seemed on top of it. The weak link, if that's what you want to calm it, is the 203k inspector. He's gonna be the shot caller on the local level do getting in good with him is a must.

Were you going to act as the General Contractor and line everything up yourself?
I did and while it was a little bit if work, I was able to reinvest the otherwise $4-$7k that would have gone to a GC back into the house. It was a king ride but well worth it.

 

[IndyGunworks]

I am going to use a GC friend to do as much of the stuff as i cannot do, but he is going to allow me to do as much myself as i can and his bids reflect that, but on paper he is the man.