What is the typical experience of working with a Mortgage Broker for a 203k rehab loan?
I am trying to get a 203k rehab loan through a broker. I tried to talk to Wells Fargo but they were charging ridiculous interest rates (2.2% over the 30 yr fixed rate i was getting) and a mandatory 2.5 points in fees which was making no sense at all.
However I was doubtful if a broker could help me, especially on just 1 point in Origination and a interest rate which was same as the 30 yr fixed (after the rehab period). First of all the GFE that was sent out to me by him just had the broker cost estimates and clearly mentioned that it was not a commitment for a loan. Then the entire funding has been delayed inspite of some detailed paperwork i had done in advance for the rehab – contractors, projects, layouts etc. The broker tells me that the lender is busy with the refi rush as the interest rates have come down. It sounds legitimate but I thought sale assets were preferred over refi’s. I have never met anyone from the Lending institution (PMAC Mortgage in SoCal – Anyone heard of it?). Is it normal for the process to work like this (borrower not meeting lender)? Are delays normal in 203k? What are the typical costs you pay for a 203 k loan?
Would appreciate if you can share your experience of funding a 203k loan or such loan through a broker.
My fiance and I are looking at a house that we want to but with a FHA loan. The house needs updated alot so we offered to pay the seller full asking price if he gave us 10k to re Model.
Well he counter offered with full asking price and 5k to remodel.
5 is not going to be enough. I just know it.
I don’t know much about this kinda stuff so my question is..will we be able to offer him more then asking price so we can get 10k and he still gets what he wants out of the house?
Or is that against and FHA loan rules? Will FHA say that the house isn’t worth what we offer?
The price we want to offer is 10k less then we were pre approved for.
The mortgage guy said we could try to get a FHA 203k loan.
But I don’t know what this is and how it will help.
Can some onepleasee help?
I know that they give you money for rehab but don’t you have to have the money upfront or a credit card to cover the cost then get reimbursed by them?
Say the asking price is 154,900 and we offered to pay full and get 10k back. The seller counter offers full asking price and 5k back.
Can I call my realtor and say I want to offer 160k & get 10k back so he still comes out at 150k?
Will it matter if the FHA aprasier says the house is only worth 154,900?