Comments on: A Word of Caution about HUD 203(k) Mortgages http://news.mortgagecalculator.org/a-word-of-caution-about-hud-203k-mortgages/ Helping You Buy Your Home Thu, 26 Aug 2010 17:26:35 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: k musial http://news.mortgagecalculator.org/a-word-of-caution-about-hud-203k-mortgages/comment-page-1/#comment-3364 k musial Tue, 02 Mar 2010 15:28:21 +0000 http://news.mortgagecalculator.org/?p=472#comment-3364 Thanks for this article. Though it barely even gets to the levels of agony that results from using a 203k mortgage. I wish there was more attention paid to this. Thanks for this article. Though it barely even gets to the levels of agony that results from using a 203k mortgage. I wish there was more attention paid to this.

]]> By: Rene Martinez http://news.mortgagecalculator.org/a-word-of-caution-about-hud-203k-mortgages/comment-page-1/#comment-3352 Rene Martinez Sun, 28 Feb 2010 01:23:15 +0000 http://news.mortgagecalculator.org/?p=472#comment-3352 Heed this article. I'm in the process of trying to buy a wonderful home using a 203k from wells Fargo. The problem is wells Fargo has screwed up the paperwork many many times. Now the sellers have threatened to kill the contract. Likely the whole thing will result in about 4 months and $7k wasted on my end. 203ks are a joke. If you insist on getting one, DON'T use wells Fargo. Chose a smaller and more agile company. The gov't isn't on the side of the people either. They haven't done anything appreciable to make banks keep their end of contracts. Heed this article. I’m in the process of trying to buy a wonderful home using a 203k from wells Fargo. The problem is wells Fargo has screwed up the paperwork many many times. Now the sellers have threatened to kill the contract. Likely the whole thing will result in about 4 months and $7k wasted on my end. 203ks are a joke. If you insist on getting one, DON’T use wells Fargo. Chose a smaller and more agile company. The gov’t isn’t on the side of the people either. They haven’t done anything appreciable to make banks keep their end of contracts.

]]> By: tcurranmortgage http://news.mortgagecalculator.org/a-word-of-caution-about-hud-203k-mortgages/comment-page-1/#comment-2951 tcurranmortgage Tue, 26 Jan 2010 02:30:40 +0000 http://news.mortgagecalculator.org/?p=472#comment-2951 Love this article, thanks for posting! I've originated and closed sec. 203k loans going back as far as 1992. Back in those days President Clinton created an initiative for Mortgage Bankers to use the program to rehabilitate inner-city housing. In search of profit and a somewhat idealistic bent, I jumped in feet first and originated 203k's in Harlem and Bedford-Stuyvesant here in New York. We were doing purchases of about $50,000 with $200,000 of repairs, converting SRO housing (Single Room Occupancy) and burned out and gutted Brownstones into decent and affordable 1, 2, 3 and 4 family homes. I became an expert by dint of the process: learn what you need to close the loan or die! That problem you point out about the escrow "draw-outs" is typical of this program and the reason why you want to work with a regional/local Mortgage Banker, NOT one of those losers who took tons of bailout money just to improve the number of prompts on their voicemail systems before you get a living, breathing human on the line. As a mortgage broker today I would NEVER place one of my 203k loans with any of the large banks. No, not EVER. BTW, this program is NOT just for "fixer-uppers." Oh, no, not at all! If you want a new kitchen for $15,000, there you go: 203k. If you want to make the property energy efficient, and finish the basement for a family room, well, there you go, again: 203k. I've long told Realtors they can sell more homes using this amazing financing product when the Buyers object to the kitschy 1965-era panelling and the tiny kitchen and the oh-so-1953 bathrooms. A 203k loan with $25,000 of improvements goes a long way to helping a homebuyer become a homeowner of a home they'll love. Secret Family Recipe: Your Contractor must understand there is NO upfront money. The program protects the contractor money but doesn't pay out until the work is under way. TC Love this article, thanks for posting!

I’ve originated and closed sec. 203k loans going back as far as 1992. Back in those days President Clinton created an initiative for Mortgage Bankers to use the program to rehabilitate inner-city housing. In search of profit and a somewhat idealistic bent, I jumped in feet first and originated 203k’s in Harlem and Bedford-Stuyvesant here in New York.

We were doing purchases of about $50,000 with $200,000 of repairs, converting SRO housing (Single Room Occupancy) and burned out and gutted Brownstones into decent and affordable 1, 2, 3 and 4 family homes. I became an expert by dint of the process: learn what you need to close the loan or die!

That problem you point out about the escrow “draw-outs” is typical of this program and the reason why you want to work with a regional/local Mortgage Banker, NOT one of those losers who took tons of bailout money just to improve the number of prompts on their voicemail systems before you get a living, breathing human on the line. As a mortgage broker today I would NEVER place one of my 203k loans with any of the large banks. No, not EVER.

BTW, this program is NOT just for “fixer-uppers.” Oh, no, not at all! If you want a new kitchen for $15,000, there you go: 203k. If you want to make the property energy efficient, and finish the basement for a family room, well, there you go, again: 203k.

I’ve long told Realtors they can sell more homes using this amazing financing product when the Buyers object to the kitschy 1965-era panelling and the tiny kitchen and the oh-so-1953 bathrooms. A 203k loan with $25,000 of improvements goes a long way to helping a homebuyer become a homeowner of a home they’ll love.

Secret Family Recipe: Your Contractor must understand there is NO upfront money. The program protects the contractor money but doesn’t pay out until the work is under way.

TC

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