203k Loans

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Hi Neilcathy,

Getting a loan will depend upon your credit score. You haven't mentioned what your credit score is like. In case of a FHA loan, you need to have a minimum of 620 credit score. Apart from this, you should not have negative items on your credit report. Moreover, stable income also plays an important role in getting a loan. If you satisfy these criteria, then you will be able to get a loan from any of FHA backed lenders. You can also speak to the lenders of this community and seek a no obligation free mortgage consultation from them. This will let you know whether you qualify for the loan or not.

fha loans now require 3.5% down payment. having said that, yes you can obtain a streamline 203K loan if you qualify. give some more details and we can better direct you.

A streamline FHA requires no appraisal, income or asset documentation. You will not be able to do a streamline into a 203K, you will certainly need an appraisal for the new value and will also need to qualify for the new payment with the larger balance.

but there's a distinction in 203k loans, brian, with streamline and consultant choices. the streamline 203k is available to those doing a reasonably minimal amount of renovation/rehabilitation. for larger jobs, an fha consultant is required ($35k and up). i think that's what our poster was inquiring about. you are certainly correct about the need for appraisal - a streamline 203k has no relationship with a streamline fha refinance.

George if you could show me where in the 4155 it states this type of 203K (consultant choices) you are talking about I would appreciate it, I never heard of such an animal nor has my underwriter who has been doing fha for 15years.

i will seek it out, brian, but not sure where. we offer both of these products (streamline and consultant).

George I found the info about the streamlined 203K, all that means is the amount of repairs is under 35,000. other then that the guidelines appear almost the same except "if a bank wishes they can extend 50% of any one repair to the contractor before the work is completed".....this is at the banks discretion. This program is not underwritten any differently then a standard 203K and is not fast tracked in anyway as the person was asking in their post.

yes...true...i'm sorry if i made you think that it was a streamline in the other sense of the word. i guess we'd have to say that "streamline" is simply a modifier (with separate meanings) used with either "refinance" or "203k."

HUD has developed an FHA insured mortgage, called the “Streamline (K)” Limited Repair Program that permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser. All standard FHA underwriting guides apply as they do for regular FHA loans in regards to credit, income & asset documentation. I have written and closed this type of FHA Loan.

"www.examiner.com/x-12359-Indianapolis-Mortgage-Examiner~y2009m6d3-FHA-Streamline-K"

[Link deactivated as per forum rules. Thanks.]

Yes, you can Streamline from a 203k FHA Loan to an 203B FHA Loan. There are two forms of FHA Streamline 203(b) one with Appraisal, One Without Appraisal.

We are in the process of buying a house. Our interest rate was going to be 5%. Since the house needed some electrical work done, we now have to do a 203k, now are lender is telling us, because we are doing a 203k our rate goes up to 5.5%. Is this true? Its about $5,000 in Light fixtures and labor.We would like to pay that upfront so we dont have to do a 203k, but she says we cant, we have to go the 203k route.

Indeed, 203K loan rates are higher than "standard" fha rates. The inherent risk is higher with a K loan than with a non-K loan. The lender takes on the risk of the work that needs to be done in this case.

However, I'm not sure I quite get why the 203K is necessary for you. If the work is largely cosmetic (or all cosmetic), then what's the rationale for making you go the K route? You'll need more than $5000 to cover the costs of the work plus inspection(s), etc. anyway.

That is not HUDs rule for the rate to be higher on the FHA 203k Streamline or the Full 203k, we offer this program at the same rate as we do on any other program. Your lender is brokering your loan out. And the pricing is just different with whatever lender he/she has chosen.

"http://www.examiner.com/x-12359-Indianapolis-Mortgage-Examiner~y2009m6d3-FHA-Streamline-K"
"http://www.examiner.com/x-12359-Indianapolis-Mortgage-Examiner~y2010m5d2-Homebuyers-tap-Watson-Summers-Group-to-Provide-FHA-203k-Financing-for-Homes-in-need-of-repair"


[Links deactivated as per forum rules. Thanks.]

Thanks for that update. My experience was with direct lenders, but of course the loans were sold as soon as a pen hit paper (BofA being the most frequent investor).