Have FHA 203k questions.. urgent!!!

[futurehomeowner?]

I know that I have a thread already but this is an urgent request for help. The house was listed today and there were already 6 people looking at the house. Normally I would just call my loan officer but he is unavailable until Sunday because of a family emergency. What a bad time for an emergency. So anyways, the house we looked at is in the right school district but needs a lot of repair. The county assessment on the house is only 47k but they have it listed for 49k. All of the other houses on the street are over 150k. This house is a 4 bed, 2 bath house and is livable but basically needs to be gutted. I am pre approved for FHA but since they are picky on the house I don't think this house will fly. Because of that I was thinking about an FHA 203k loan but I am not sure how they work. I know the premise that you get the money from the loan to do repairs and the repairs have to be by an approved person but how do you figure out how much you need? Does this make the process much longer than a normal FHA loan or is it about the same?

 

Originally I could not get a pre approval for a conventional but we were trying for 90k? Would it be easier to get approved for a house half the price or is it actually tougher since the bank doesn't like to do loans for this small?

 

Does anyone have any experience with a 203k loan?

 

I have so many other questions but my mind is racing right now that I am having a hard time putting this down on paper.

 

oh yeah, 1 more. When do sellers make their decision on who they want to sell it to? Do they usually collect offers over the course of a week or do they just decide as they come in? So if I offer more than what they have seen so far they may just jump at ours now since it was higher? My guess is someone is going to come in with cash and the deal will be done with them.

[RedHairedLady]

I used to see the occasional 203k loan, when I worked for a mortgage company, reviewing mortgage files.

 

My understanding is the loan is based on what the finished value of the home will be. So you would have to qualify for mortgage large enough to cover the purchase price of the home + repairs.

 

I hope that helps a little. I don't know enough about them to answer your other questions. Hopefully someone else will be by soon, who can answer your other questions.

[futurehomeowner?]

I used to see the occasional 203k loan, when I worked for a mortgage company, reviewing mortgage files.

 

My understanding is the loan is based on what the finished value of the home will be. So you would have to qualify for mortgage large enough to cover the purchase price of the home + repairs.

 

I hope that helps a little. I don't know enough about them to answer your other questions. Hopefully someone else will be by soon, who can answer your other questions.

Thank you RHL. My wife is going nuts. I just love how this process is so stressful and we haven't even begun yet. I told her so much about the stories on here so she wouldn't stress and after today I can see this is going to be a long process for us.

[RedHairedLady]

 

 

I used to see the occasional 203k loan, when I worked for a mortgage company, reviewing mortgage files.

 

My understanding is the loan is based on what the finished value of the home will be. So you would have to qualify for mortgage large enough to cover the purchase price of the home + repairs.

 

I hope that helps a little. I don't know enough about them to answer your other questions. Hopefully someone else will be by soon, who can answer your other questions.

Thank you RHL. My wife is going nuts. I just love how this process is so stressful and we haven't even begun yet. I told her so much about the stories on here so she wouldn't stress and after today I can see this is going to be a long process for us.

You're welcome!

 

I've never owned a house before, but I can imagine the whole process being stressful, for someone going through it for the first time. Hopefully I'll have a chance to experience that particular stress one day soon too, lol.

Edited March 29, 2014 by RedHairedLady

[shifter]

Offers typically are only valid for 2-3 days. So you can't collect offers over a time period and pick the best one unless you have 2 offers come in on the same day.

[futurehomeowner?]

Offers typically are only valid for 2-3 days. So you can't collect offers over a time period and pick the best one unless you have 2 offers come in on the same day.

 

ahh that is very helpful. For some reason I was thinking they were good for 14 or 30 days. I guess that means we better get an offer in first thing in the morning if we decide to make one.

 

If I am already pre approved for an FHA loan, do I need to get a new pre approval for an FHA 203k or can I make an offer based on my FhA and then switch it to 203k later?