Lender · San Diego, CA · Member since 2022 · 235 posts · 94 votes
Hello!
I am hoping to use a 203k loan product, preferably in Tuscon AZ, and I'm trying to think of ways to make my offer more competitive so that seller's agents might consider it.
Do you have any recommendations when putting in a 203k offer?
And what are the main reasons sellers' agents are unlikely to accept it? (Besides the red tape, or if that's it, that's also good to know)
The lender I used for 203k said they close the most 203k loans up and down the Eastern seaboard. They rescued my loan when my previous lender was flailing around doing weird things and wasting time. Make sure they understand the loan product.
I used a 203k limited loan on my first property (fourplex house hack). Make sure you get the draw checks made out to you and disburse them to the contractor only when they meet their milestones. My contractor turned out to be a scam artist and I am certain he is singlehandedly responsible for about 50% of the gray hairs on my head.
@Mary Ainsworth I would guide you here that these are all questions for your loan officer. If your lender has you prequalified for this loan - then why wouldn't the seller accept it? Ask that. And they need to be specific. What is their closing time? What option period do you need to place on the contract? What restrictions do they have with the contractor? How long does it take for them to find an FHA consultant? How many days are you putting in your Third Party Financing Addendum? They need to know these things and tell them to you. These are lender specific questions. I've already got alarms going off in my head because if they haven't told you this already...then I'm wondering why. Get with them right away.
I have access to a template cover letter that explains the benefits of the 203k that the seller and seller's agent will receive by accepting your 203k offer.
Also recommend having your 203k Team in place - a lender with verifiable 203k experience and a contractor who have been properly educated and financially vetted for the 203k or even one with verifiable 203k experience.
The average lender and average contractor are not set up to properly manage the complexities of the 203k.
I have access to a template cover letter that explains the benefits of the 203k that the seller and seller's agent will receive by accepting your 203k offer.
Also recommend having your 203k Team in place - a lender with verifiable 203k experience and a contractor who have been properly educated and financially vetted for the 203k or even one with verifiable 203k experience.
The average lender and average contractor are not set up to properly manage the complexities of the 203k.
Yes I was talking with a lender who wasn't as experienced in 203k loans so I think that is the issue here. I'll keep shopping around for the right lender. I did, however, find a contractor from the list of certified 203k contractors.
Would you be able to provide me with that template of 203k benefits made for seller agents? I think the biggest hurdle is helping them to understand the loan. If they understood it and were okay with the red tape, I think it'd be a much easier ask to get a 203k loan accepted.
The lender I used for 203k said they close the most 203k loans up and down the Eastern seaboard. They rescued my loan when my previous lender was flailing around doing weird things and wasting time. Make sure they understand the loan product.
I used a 203k limited loan on my first property (fourplex house hack). Make sure you get the draw checks made out to you and disburse them to the contractor only when they meet their milestones. My contractor turned out to be a scam artist and I am certain he is singlehandedly responsible for about 50% of the gray hairs on my head.