FHA 203K Lender experience in Chicago IL

[Anonymous]

Hello all, 

thanks in advance for any information provided to me.  I've been finalizing everything needed within my credit score to prepare the process to apply for 203K loan.  My credit scores are all sitting at 640 with one credit card left to report 0 balance as statement just closed on that today.  My Fico has been a great help in the process.  There is a ton of information out there on mortgages and 203k loans and such so not quite sure what lender to start the process with Wells Fargo is currently my lead company to work with.  What experiences have you had with a 203k loan and who was the lender on the loan?   

I take your recommendations seriously, I was reading reviews on Wells Fargo and most are overwhelmingly negative.

[Anonymous]

Keep in mind folks only write stuff when the experience is bad.  I think it all depends on the individual lending officer.  Are you working from WF online or a local branch?

I just worked a mortgage with a mid level company because it was easy.  Just filled out the online app and short while later they called me and said I was good.  I just keep in mind the lending officer prolly has a dozen files on her desk.  My house is under construction so gonna be several months before mine gets to the top.  If I need to know something I find it easier to just come here, in lieu of playing phone tag.

If I had to do over again, I might have used a local branch of bank ,or stand alone mortgage guys.   Something to be said, to just walking in the LO's office and quiz him about stuff, but so far my experience has been good, in fact they have been exemplary. They are helping me save money by advising if I could get my CS up to the next level they could save me some money.  They refered me to place that could do that, and in just a little over 5 weeks our score is almost there.

If they make you feel they are doing all they can do to get you in your house, and guiding you along the way, prolly can't ask for more than that.

[Anonymous]

I have recently completed a FHA 203k through Prospect.  Prospect was great, but the FHA 203k is overall not a great program.  I should write up something long about the whole process, but my main bit of advice is that the 203k is a bad deal.  Between UFMIP and the high-rate monthly MIP, you will pay a fortune.  If you can find a place that will pass a home inspection for a conventional, I would strongly advise buying it that way, then applying for a separate renovation/HELOC loan.

[Anonymous]

Sorry for the delayed response Christmas keeps us all busy.  He's out of a offince that is local well suburbs local so as close as it gets.  I made a bonehead mistake by using my credit card on the last day of statement closing and the balance and my credit card reported 100% utilization which dipped my score about 30 points on one and 26 on the other.  I did the charge as a favor for my brother in law to mask the purchase of my sister's engagement ring I paid the balance back down to zero within 3-5 days of it posting It is unfortinately one of my last cards to report the statement closes on the 22nd and it post to the credit report usually like the 30th.  

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@Anonymous wrote:

Keep in mind folks only write stuff when the experience is bad.  I think it all depends on the individual lending officer.  Are you working from WF online or a local branch?

I just worked a mortgage with a mid level company because it was easy.  Just filled out the online app and short while later they called me and said I was good.  I just keep in mind the lending officer prolly has a dozen files on her desk.  My house is under construction so gonna be several months before mine gets to the top.  If I need to know something I find it easier to just come here, in lieu of playing phone tag.

If I had to do over again, I might have used a local branch of bank ,or stand alone mortgage guys.   Something to be said, to just walking in the LO's office and quiz him about stuff, but so far my experience has been good, in fact they have been exemplary. They are helping me save money by advising if I could get my CS up to the next level they could save me some money.  They refered me to place that could do that, and in just a little over 5 weeks our score is almost there.

If they make you feel they are doing all they can do to get you in your house, and guiding you along the way, prolly can't ask for more than that.

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[Anonymous]

I think it would be tremendosly helpful if you do a write up on the entire process.  I know all about the Mortgage insurance and such but the plan for us is to buy something for under 100K 2-3 units and put under 100K - 150K in repairs and remodeling we will rent out unit 2 and 3 and use that to primarily pay off mortgage coming out of pocket for the remainder.  Luckily i'm in Chicago and rent in chicago on average is above 1000 some lexuary apartments go for over 2500.  Our goal is to get the units in place to charge 1500 for each unit.  The plan is to refinance out of FHA and into conventential within 4-12 months and use the increase equity due to increase in property values (very healthy in most places in Chicago) to help eliminate the fees involved in the mortgage process such as MI.  

SamL wrote:

I have recently completed a FHA 203k through Prospect.  Prospect was great, but the FHA 203k is overall not a great program.  I should write up something long about the whole process, but my main bit of advice is that the 203k is a bad deal.  Between UFMIP and the high-rate monthly MIP, you will pay a fortune.  If you can find a place that will pass a home inspection for a conventional, I would strongly advise buying it that way, then applying for a separate renovation/HELOC loan.

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