02-06-2013 09:47 AM
Now that I decided to get multiple quotes on my loan, one of the lenders mentioned that I should consider looking into streamline 203k for updates that are needed to our home. Since the quote that was given saves us approximately 11k in comparison to the first broker we were going with, does it makes sense to do a 203k for 10k? Should I leave the loan as regular FHA? Any experiences with 203k would be greatly appreciated!
02-06-2013 11:37 AM
I was originally going to do a 203k loan, but after the bids came back I decided against this. The work was estimated at $23k and I just finished doing all of these things myself (and I am a young single mom lol) for $3k. If you decide to go this route make sure you look over the bids very carefully!! It can't hurt to look into all your options and then compare to make the best decision for your family.
02-06-2013 12:29 PM - edited 02-06-2013 12:31 PM
I just learned about 203(k) loans as well, and I'm seriously considering one for a property that's in a great location and has great "bones", but needs all new wiring, walls, floors, etc. I think for a major renovation, it's probably a great option. For something smaller, it may or may not be worth the extra steps involved. If the renovation is something that is a must-have to live in the house, and you can't pay for it or finance it another way, then it might be worth it.
I believe it's also a good option if you're going for an FHA mortgage, the house can't pass an FHA inspection as-is, and neither the seller or you can/will pay for the necessary repairs.
02-06-2013 12:42 PM
I opted not to do the 203k. Its a great option if you need major reno work but in my case the updates are more cosmetic. I couldn't justify paying a percentage point higher for something that's more of a want thna a need. I guess I will have to stick to living with my 1940s kicthen and update little by little.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO