Need help making sense of FHA options?
I am looking into FHA loans with fine grain detail. I don’t want any surprises, and I want to know the benefits of each type.
I think that thus far the 203k Streamline would be the best fit. The home already needs Lead Based Paint removal, and also there are 4500 dollars in other repairs called for in escrow.
Since the escrow amount for repairs is under 5000 I thought the streamline 203k would work well?
Also i was told that if I do a 203k type, that only 10% of the purchase price can be applied to the cost of doing the lead base paint cleanup, this is likely going to be far below what it would actually cost, as I would like it removed entirely while the lead paint inspection report estimated just a stabilization at 6600 dollars, and that wouldn’t include an assessor coming in and making sure it was done right afterward either, so this part has me scared.
I want the lead paint out of there completely, and it seems the 203k would be the only way to make sure that happens while getting anything back toward the cost of removal, does anyone have any knowledge to contribute toward that to help me? It’s a awful lot of money and i want to get it taken out b/c I’m going to be letting my sister stay with me and she is preggo and lead is way bad for babies and pregnant women, i don’t want any risk whatsoever to my niece! but at the same time I’m not made of money :*(
I heard there is a credit that someone will give for the amount of 2500 that can be used toward closing costs, how do i get that?
Does anyone know if there are requirements to how long you have to wait on paying the mortgage off?
Beef- do you know when and what those new laws are?
Noneya – “Most streamline 203K loans have minimum of 5k and maximum of 35K. Are you purchasing a HUD owned home?” YES and the streamline has no minimum btw.
“You can ask for seller concessions of up to 6% of the sales price for your closing costs.
The cost to clean up the lead based paint is $ 6600(does this include repainting?) and you have an additional 5K +/- for other repairs?” Well, i have learned that I don’t HAVE to do a FHA to get the 2500 toward closing or repairs, all that is needed is that the bid exceed 25000 dollars on a HUD home. So that right there basically negates the whole reason I was going to go with a FHA, which was to get a bit free to go toward the paint cleanup, all this mumbo jumbo can go to hell, i’m paying cash, lol.
I’m a mortgage banker/broker
To answer your question a bit further though Noneya for other’s sake, the cost of 6600 was just to do a “stabilization” which means the contractors going in can just chip off the lose stuff and paint over it with an “encapsulant” type of paint. But I didn’t want any of that crap left behind whatsoever as my sister’s health will not be jeapordized by someone potentially doing a poor job, hence I wanted it removed 100%, the cost of that was likely going to go much higher but I don’t know for sure as the contractor I was interested in most never got a chance to get out there with me, the property was sold yesterday 🙁 Guess I’m going with the other one I was looking at, oh well, it has a pool instead of a big backyard.