Hi there,
I am looking for some type of help or maybe some who has some type of knowledge regarding the FHA 203K loan (not the streamline). I have recently was looking for a home and I managed to find one for $79,5K. It was a foreclosed property and luckily I have done my homework (thank god for HGTV). I offered the full asking price with $4K back in closing costs. My realtor pretty much told me that a bank owned property never pays any concessions fees whatsoever. I put the offer in on a Friday, the offer was accepted on that Monday.
This is the thing.... I signed up for E-loans and they were sending me all types of mortgages offers. At first, I started to go out with a bank in Mass, but they only wanted to give me $31K for the cost of reparis. They have what is called a streamlined loan (Max you can take out in additional to your loan is $35K). I opted for the FHA 203K Loan. After all the paperwork was done, I kept asking the mortgage broker, what my interest rate was going to be and he said that he locked me in at 6% and I thought ok, that is better than I thought.
I have another friend that owns his own mortgage company and about 1 week+/- before I was suppose to close, he sends me an email stating that his company is financing the FHA 203K Loan. I told him the only way that I would go with him is that he would have to give me an interest rate of 5%. He agreed. I was his first loan and I believe his last. After the closing, i have contacted him several times regarding when can I submit the paperwork for the draws so that the Contractor can get paid and start the work. He didn't have any answers for me at all. I goggled the Company on line to see if I can contact another location and see if they had any answers. Believe it or not, this company is a family owned Company based out of Phoenix, AZ. I spoke to the brother and he stated that my loan was being sold to Countrywide because they specialize in these types of loans. Aggravated with the lack of communication from the original bank, I started doing homework of my own. Accordingly to FHA (HUD), I could have incorporated up to six (6) months worth of PITI into the payment and that work is suppose to commense w ithin 30 days of my closing.
I closed on the 20th Jan and Countrywide(CW) just purchased my loan on the 23rd Feb. This is past the 30 day mark. I spoke to the people at CW and they told me that my first payment is due on the 1st of April, but yet the contractor has yet to start the work. I am beyond myself and don't know what to do. I have asked CW to suspend my first payment until after the work is completed and I have moved into my home. They told me that it can't be done and that was the end of that. In this work order write up that the contractor has submitted, they are now telling me that I have to purchased the appliances up front and that they will reimburse me....This was not explained to me at all. And also the contractor can request a 50% deposit for the Cabinets, flooring, roof and windows. I have three out of the fours requests and the 203K Consultant ( this is required) is telling me that it is going to take an additional 2weeks (10days) for CW to get me setup in the system and before they can process any draw /deposits requests. I
I am hoping that someone can tell me what I can do or offer any advice on how this should be handled. Or if you have had or know someone that has had a FHA 203K loan with CW and what I can expect. Any information would would be vital and greatly appreciated.
Thanks,
