What is your experience witha 203K loan?

Question

What is your experience with 203K loans? I'm having a hard time finding the right lender. I'm currently casting a wide net with lenders to see who knows how to and is willing to do it, and I'll narrow it down to one when I go under contract. I'm learning more and more everyday.  I think I understand the concept.  But how do I choose a contractor?  I know the wrong contract can cost me so much more in my money and time.  I'm nervous, but I think in the end it will be a worth while deal if I stay the course.  Anyways that was just a long winded way of me asking for any advice on the 203K loan.

Scott Wolf · Answer

@Greta Andrews, I'd check out @Matthew Porcaro.  He has a lot of great info on how to find a 203k Lender in your area.

Paul Welden · Answer

@Greta Andrews

Any FHA approved lender is allowed to do a 203k, but you really want to work with a lender who has experience with them.

HUD/FHA has 2 online databases for lenders with the most 203k experience .... HUD/FHA Lender List (enter your search radius criteria and put a checkmark next to 203k) & the 203k Endorsement Summary Report (click on Sept 2021 for the fiscal year data).

If you would like assistance with using them, let me know.

For Contractors .... the average, every day contractor is not set up to handle 203k's properly with its specialized paperwork, strict timelines, allowable repairs, different versions of the 203k, and the unique pay/draw process. Consider using contractors with verified experience with the 203k or at least ones that have been educated on it and with verifiable reserves to pay for the start up costs and ongoing expenses associated with 203k's. Here's a database of Certified 203k Contractors.

Hope this helps!

Jonathan Greene · Answer

A good 203k lender has a seasoned expeditor and contractor that they recommend. Regular contractors won't do 203k because they have to front the money each quarter payment before they get paid. 203k loan is great because you can do cosmetic fixes or a full redo and because you have the help of an estimator, contractor as a new investor, you are more protected than just going out and trying to BRRRR on your own. Make sure the lender does primarily 203k loans as a specialty, not a one-off.

Luke Rorech · Answer

@Greta Andrews check out Andy Wood with Titan Home Lending. He is one of the top renovation loan specialists in the area.

David Ramirez · Answer

Hey Greta,

Here in the Tampa Bay area, I've heard that 1st Florida Mortgage offers FHA 203k loans. I haven't worked with them but you might want to reach out to them to see if they can help you.

https://1stfloridamortgage.com...

Regards,

David

Mona B. · Answer

@Greta Andrews Hi. Interested to learn if you were able to find an active 203k lender, contractor, etc... I'm currently learn more about this product, have found a lender in Central FL, but seeking to find providers with more experience.

Greta Andrews · Answer

Thank you for this info.  This was very helpful.

What is your experience witha 203K loan?

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