Hey guys, looking to purchase a home in Long Island using a construction loan on an older property. Has anyone here had any experience with this loan? I've heard mostly good things, with a few horror stories, mostly having to do with the big banks (BoA & Wells Fargo) taking to long, or not being responsive. Any guidance would be greatly appreciated!
If you are talking about the rehab loans, I have worked with clients doing them before. It will be quite a bit of work above a traditional loan but they are really worth it with the right property. With the right contractors and a good contact person where ever you originate the loan you may still experience some delays but once the loan goes through the extra work is worth the benefit. The only guidance I would give is ask the loan officer how many 203K loans he has done to make sure you get someone with experience with them. Sometimes going to your local housing authority you can get some referrals. Also let any contractor know you are using a 203K so they know ahead of time they may have delays getting their draws.
Thanks! I have a great lender who has a ton of 203k experience, and a few good contractors lined up. I have like 150k to use for renovations, which is a nice chuck to play around with. I need to get a HUD consultant, but cant find any reviews on them.
Did you check with the lender for consultant referrals? Also you can find some on Yelp and other sites like it.
Yea, he recommended a consultant, but I still like to do my due diligence. I see a big issue people have with this loan is the timeframe it takes from start to finish, but that is the least of my issues, as I still have an apt lease for 6 months, and then can stay with in-laws if need be. Cant find anything on Yelp or Angies List.
Keep in mind there is a time limit from the time you close to the time you have to occupy the place. I think they allow for 3 months mortgage payment to be included in the loan for time out of the home and about 140 days total for completion of the work after the loan closes. Been a long while so I am not sure on the exact time frame.
