203(k) Loans

[David Hyde]

Hi BP community. Can anyone recommend a lender that is familiar with 203(k) loans in Canton, Massachusetts or Norfolk County area? Thanks

[Justin Bioc]

I'm currently working with Kathy Vasel from Sage Bank, a recommendation from @Robbie Reutzel. So far, she's been amazing in terms of keeping me informed, staying on top of my expectations, and having a lot of experience with these types of loans. Definitely put her on your consideration list. DM me if you would like her info. 

[Account Closed]

David, I have a great deal of experience with 203k loans and lend in your area.  Please post any specific questions you may have or feel free to contact me if you'd like some assistance.

[Christopher Richardson]

I have over 25 lenders (that do 203k loans) that I work with which is one of the reasons why agents refer their clients looking for 203k loans to me. I shop around to see which ones are the best fit for your scenario and the best quotes for that scenario.  I recommend getting in touch with me to talk about your scenario and what your looking to do.

[Pat Newhouse]

Christoper Richardson Hi Christopher, Do you have any experience doing a 203 loan with a hubzu purchase? Would be owner occupied.

[Chris Mason]

Originally posted by @Pat Newhouse:

Christoper Richardson Hi Christopher, Do you have any experience doing a 203 loan with a hubzu purchase? Would be owner occupied.

 The auction website in question isn't super relevant. What is relevant is a seller willing to close 2-4 weeks slower than what is otherwise normal in your market, which is often made possible by a property being so beat up that no one really wants it paired with a seller that values money over time. For example it might be an all cash offer for $300k closing in 2 weeks, versus your 203k offer for $325k closing in 6-8 weeks, that a seller is evaluating. 

Don't rate shop on 203k. It takes like 5x as much paperwork; if that isn't built into your rate then it's unlikely they have the people and processes in place to actually close ("when something looks to good to be true, it usually is"). And then you will be posting a "aargh, 203k loan nightmare!" thread on BP.

Find a local that knows 203k and is competent (not confident, competent). That's it, you're just shopping competence. You want a local because they know the permit stuff, the contractors, the zoning things, etc etc.

Then you refinance out of that crummy rate (it'll still be waaaay better than hard money) 6 months later or after the work is complete, whichever is sooner. If the property is a good 203k fit, you will make a killing.