With a Streamline 203k loan, the mortgage company is telling my husband that they have to pick the contractor?

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I need to know if that is true?

4 Comments
  1. Reply
    Judy
    May 1, 2011 at 12:21 am

    Let me guess – the contractor is the son in law of the Streamline CEO.
    /

  2. Reply
    Age of Reason
    May 1, 2011 at 1:10 am

    If that is in the contract you signed then they can do it. Find another lender

  3. Reply
    walidmrealtor
    May 1, 2011 at 1:28 am

    Interesting.

    Ask the representative if he or she can point you to the Mortgagee Letter for guidance and, that contains this stipulation.

    Here are HUD’s Mortgagee Letters which provide guidance to lenders, RE Professionals and the Public on policy matters. – http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/

    Mortgagee letters offer home buyers tons of information regarding the lending market, current regulations, policies, and any new changes.

  4. Reply
    HEATHER
    May 1, 2011 at 2:21 am

    The mortgage company does have to approve your contractor, not choose it. In other words, you can’t have your brother in law, who does work on the side, who is not licensed and bonded, do the work. They will want specific bids for construction for the contractor, references, proof of licensure, etc. A lot of times the home buyer’s first choice in contractors does not get approved by the lender. If you are pretty sure your contractor will pass their guidelines, then tell them that.

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