Questions about a house mortgage FHA 203K Loan?
My wife & I are trying to buy a foreclosure and want to fix it up. We both have bad credit, so we coudln’t get a house on our own even though I make enough money to get the mortgage. I am fixing my credit, but it won’t be fixed in time in the next 2 months to get a house. We found a co-signer, but the mortgage broker said we can’t have that because our credit isn’t high enough. So, my dad is taking out the mortgage and we are told we should get an FHA 203K loan and then he is going to do a quick deed right after, so I become the owner of the house. The mortgage broker said it is hard to get this type of loan these days and the real estate guy said it’s not. I had some questions if anyone has personal knowledge or experience with this stuff.
1. Will I qualify for the tax credit because I am doing a quick deed after or not?
2. Someone said there is a limit of ,000 for repairs on a home with an FHA 203K loan, so if I buy the house for ,000 and my mortgage was for ,000 do I have to spend every penny on repairs? If there is extra, can I keep it until something goes wrong like a basement leak or the furnace breaks?
3. I was also told that you have to get in writing from a licensed contractor for the repairs etc., but they have to be willing to be delayed in payment? How is this so because I thought after you get the mortgage, you get a check and you pay the contractor?
4. The taxes on this house are very high, and people said to appeal to the city, but I heard this usually doesn’t mean they will lower the taxes. Why don’t they make the property tax off the price you pay and what are the chances they will lower my taxes? Thank you to anyone who can help on this subject matter.
Ok, maybe I am confused about the deed thing. The real estate agent said that if he signs the deed over to me, I will be the owner of the house, he would just be responsible for the mortgage. Obviously, I would pay the bank or pay him every month, but according to below, this can’t happen? My real estate agent must be confused.
Tagged with: amp • bad credit • basement leak • co signer • dad • fha 203k loan • foreclosure • furnace • mortgage broker • personal knowledge • property tax • quick deed • real estate agent • subject matter • tax credit
Filed under: "How to fix Bad credit so I can buy a house"
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1. No, your father will have to sell you the house, the lender will not let him just deed it over to you. The bank will not allow the deed to change hands until the mortgage is completely paid off. You will not qualify for the credit buying from your father. I am clueless why you think you will qualify to buy after he buys it, your credit situation will not change.
2. There isn’t a limit, but this will work like a construction loan, there is no keeping any money.
3. You get the checks after each portion of the contraction has passed inspection. There is no money in advance.
4. All this depends on the city and state. There will be two assessments, one before and one after improvements. This is standard whereever you are.
As a loan officer able to do loans in all 50 states if you don’t have anything in judgment on your cr and have a score of at least 57*
you can be approved for a home loan.
Doing the loan the way your describing is so much more complicated than what it needs to be.
I would be happy to guide you through the process even if you do not use my services.
that will not work either. See once dad buys the home it is his. Now a quit claim deed recorded in the court house will trigger the due on sale clause in his deed of trust so that is out. No you will not qualify as a first timer if there is a family transfer. Yes you must spend the cash on repairs as the file must contain contracts for the repairs. The funds are es crowed at close and when he thinks he is done then the appraiser comes back out and inspects them and then send the new report to the lender who then will release funds to the contractor. Appeals are done and most are never heard with deaf ears. The county wants the tax revenue
"Ok, maybe I am confused about the deed thing. The real estate agent said that if he signs the deed over to me, I will be the owner of the house, he would just be responsible for the mortgage. Obviously, I would pay the bank or pay him every month, but according to below, this can’t happen? My real estate agent must be confused."
Your agent is a scumbag, he just wants the sale. You can not sign the title over to anyone without all lien holders agreeing to it. Your father has to pay off the mortgage, by check or another mortgage in your name, before he can transfer the title to you.