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Hi, I have been lurking a while but this is my first post. I was hoping any of you who've used the FHA 203 Streamline would share your experiences. How long did it take to close? What extra steps did the contractors have to go through? did you have any issue finding contractors who would work with the program? How long did it take for them to get paid? For work to get done?
We are waiting for approval on a short sale. The house definately needs a new roof and very likely a new a/c. I believe the costs will be just under 20K. I need to get 203k or I won't be able to buy since normal FHA won't finance a house that needs a new roof. However, I am scared by the scaricity of providers for this program. In Miami only Wells Fargo does them as far as I know (for bank-direct loans) and I have found a couple of mortgage brokers who have recent experience, but they admit, there aren't many insititutions to shop it around to. So all info and experiences would be greatly appreciated and would help my current stress level. Thanks, Jennifer
Well, today my realtor said the shortsale was approved although the bank has not issued the written approval letter yet. She told me to start working on the financing so there are fewer holdups later. I figured I 'd chronicle my experiences here in case any future hose hunters are curious about 203k process.
The realtor refered me to a broker who specializes in the 203k and he was upfront about the fact that it would be more expensive than a regular FHA (more points upfront, higher rate) But since its my only hope right now, we'll see if it works out. He gave me an internet link for 203k HUD approved consultants, but I don't need a consultant as I am soing streamline (under 35K, no structural work). But they are sometimes also contractors who do the work, so I called one and left a message to see if I can get an estimate from them for the work I need. We'll see.
I'd still like to hear about others' 203k experiences if anybody's out there.
We were able to get a USDA version of the 203k that is just being tested in limited areas. (Limited being not all states, even if the property is in a qualifying area for regular USDA.)
Anyway, we are in the construction/improvement phase right now and it's going very well. We actually went with a contractor that our LO recommended. She does a lot of these loans and 203ks, which I guess would be the first thing I'd advise someone to look for. We didn't have to have "her" guy do the work, but he seemed well qualified and was very reasonable. We had multiple contractors bidding and half of them didn't even follow through with a quote after looking at the projects. We also used our own source for some replacement windows and for well work, and those two have already been paid in full. It's been a very simple process to request the checks. T
We finally got the written short-sale approval from the sellers' bank yesterday and those crazy nuts only gave us until 10/14 to close. There is no way that's going to happen (its only 21 days away). To add insult to injury, I managed to schedule a home inspection and a contractor estimate for tomorrow morning, and the seller said they couldn't do it tomorrow, we have to wait until Monday 9/28! My realtor said that the bank will give an extension when they see progress on the loan and no insermountable obstacles. I hope she's right. The good news is I found a contractor who's willing to take on the project (a distant relative). I think by the end of next week we'll have a better idea of what can happen. I guess I should be very worried about the closing date thing, but if they don't sell it to me, they can't sell it to anyone else with FHA (since it needs a new roof), which is most of the market right now, so I hope reason will prevail.
This weekend is going to be torture!