So, I closed a few 203K client mortgages yesterday. One in particular was very interesting. The client lived in Colorado and called me off my website. They were already under contract on the home they wanted to buy when I began working with them. We worked through the initial process and ordered the appraisal. Once we received it back we saw pictures of a crack in the foundation, standing water in the basement, and falling down outbuildings in the yard.
I called the client and discussed these items with them. From there I advised them on what to do to be able to keep this as a streamline 203K because they didn’t want to switch to a full 203k loan. The engineer’s inspection allowed us to show the property was not in need of structural repair. We also had to modify their scope of work to accommodate for the sump pump to be properly repaired, and outbuilding removed prior to closing by the seller. We proceeded to closing, but the client had to obtain flood insurance because the house was in a flood plain.
The ability to maintain this as a streamline and keep within one week of original deadlines was highly tied to the experience of a seasoned 203K lender. If you are starting down the path of wanting or in the middle of getting a 203K loan make sure you are with an experienced lender. I commonly field questions by consumers who are working with lenders and are not properly educated.