Posted on: 08th Aug, 2011 11:56 pm
FHA 203k Streamline Loan - My broker told me that this is a tough loan and people don't get qualified for this easily. Can the mortgage experts here tell me how hard is it to get approved for this loan? Is it really as tough as my broker says?
Hi Lovelyrains,
Well, FHA Streamline loans are quite common and no harder to get than any other FHA loan. However, at times the process may be lengthy. Also, not every FHA lender will be able to offer you this product. Thus, your mortgage broker will have to shop around to find a lender that will process your loan.
Take care.
Well, FHA Streamline loans are quite common and no harder to get than any other FHA loan. However, at times the process may be lengthy. Also, not every FHA lender will be able to offer you this product. Thus, your mortgage broker will have to shop around to find a lender that will process your loan.
Take care.
Getting the best deals out of FHA Streamline loans are quite rare. Countries do vary in terms of their loan qualifications. Maybe your broker found it too difficult for you to meet the qualifications on that kind of loan.
>>My broker told me that this is a tough loan and people don't get qualified for this easily.
Your Broker is a little off with her statement - it's just as easy for you to get qualified for a 203k mortgage as it is for you to get qualified for FHA's standard 203b mortgage. The difficult part is getting the house to qualify. There's much more work that has to be done with a 203k, and it's challenging. As such, it's considered a niche program and some Loan Officers specialize in that program only. Chances are, your Broker does standard FHA mortgages, but not 203k. If you're looking to purchase a fixer upper house, the 203k program makes a lot of sense, but get a Loan Officer that specializes in that program exclusively, if you can. It'll save you a lot of pain and frustration.
Your Broker is a little off with her statement - it's just as easy for you to get qualified for a 203k mortgage as it is for you to get qualified for FHA's standard 203b mortgage. The difficult part is getting the house to qualify. There's much more work that has to be done with a 203k, and it's challenging. As such, it's considered a niche program and some Loan Officers specialize in that program only. Chances are, your Broker does standard FHA mortgages, but not 203k. If you're looking to purchase a fixer upper house, the 203k program makes a lot of sense, but get a Loan Officer that specializes in that program exclusively, if you can. It'll save you a lot of pain and frustration.
The FHA 203k Loan (Standard/Full and Streamline) are only challenging if 203k-experienced/educated professionals (i.e. Lender, Realtor & Certified 203k Contractor) are not used.
The main problem is that FHA/HUD will allow almost any FHA approved lender to originate (thereby controlling the 203k process) 203k loans with no required education/training. So, to assure the smoothest experience possible, work with a lender (could be mortgage broker) with verifiable 203k experience, a Realtor (if you are buying) who knows the proper verbiage to include in the purchase offer contract and a Certified 203k Contractor (has been educated on the 203k and/or has verifiable 203k experience) to submit the renovation estimate and complete the improvements.
It's easy to get approved for a 203k Loan. Because the 203k is an FHA loan, if you get approved for the traditional FHA loan, called the FHA 203b, then you are already approved for the FHA 203k. It's that simple.
The main problem is that FHA/HUD will allow almost any FHA approved lender to originate (thereby controlling the 203k process) 203k loans with no required education/training. So, to assure the smoothest experience possible, work with a lender (could be mortgage broker) with verifiable 203k experience, a Realtor (if you are buying) who knows the proper verbiage to include in the purchase offer contract and a Certified 203k Contractor (has been educated on the 203k and/or has verifiable 203k experience) to submit the renovation estimate and complete the improvements.
It's easy to get approved for a 203k Loan. Because the 203k is an FHA loan, if you get approved for the traditional FHA loan, called the FHA 203b, then you are already approved for the FHA 203k. It's that simple.