Category Archives: Financing Options

This is just a brief message to remind you of the benefits of the 203(k) loan that’s available through FHA.  Sorry real estate investors, it’s not for you.  But if you are someone who is in the market to purchase a home but the home is going to need a lot of repairs and you are strapped for cash you may seriously want to consider a 203(k) loan.

Over the past year I’ve helped several people purchase homes using this program.  There are some pretty heaving fees for using the 203(k) loan and a lot of hoops to jump through.  But if you find a home for sale in the Kansas City area that would allow you to pay the fees, jump through the hoops and still  be sitting on a very nice, large nest egg of equity when you were through would it be worth checking out?

I’m currently representing two FHA buyers and one FHA seller (the buyer for their property is FHA) and I’m being told from two of the three lenders (all different) that there is beginning to be rumblings that the underwriters and appraisers are running a bit behind.  Gee.  Who could have seen this coming?

With the April 30 deadline coming, first time home buyers out in droves and FHA being the primary source of home financing these days the delays are to be expected, though not hoped for.

The one that is not saying there could be delays?  Well, they have their own in-house FHA underwriting.  Coincidence?  Do you really think so?

If you are still looking to buy ask your lender if they have “in-house” FHA underwriting.

I read with amusement this morning a story from Yahoo!/Huffington Post about Chase messing over a couple regarding their mortgage and ultimately, foreclosure.  I’ve been involved with similar scenarios regarding Countrywide/Bank of America on a couple of occasions for clients.

Interestingly enough I had a conversation about banks yesterday with Steve F of the Bank of Blue Valley.  Naturally, he took a more defensive posture for banks.  Understandable for two reasons:  1) He works for a  bank.  2) He works for a bank that isn’t too big or stupid for the left hand to not know what the right hand is doing.  I like Steve and the Bank of Blue Valley.  They have always been very responsive to my needs.

Just another reason to consider the size of the bank when building a relationship.  Real estate investors, are you listening?

Not a long post today.  Just a link to a good read on Yahoo! regarding you and your credit.

I went home for lunch today.  While sitting there eating my baked ham sandwich (with Cascone’s Creamy Italian Dressing, umm, umm, good) and watching CNN a commercial from Bank of America came on with several very caring individuals showing empathy and letting us all know how much they care about your housing situation.  I think the point was that if you are having trouble, contact them, tell them your situation and they will help you to work things out. 

Ha!  Almost without exception every interaction I’ve had with BOA loan servicing has been a complete joke.  I’ve actually taken my sign out of people’s yards that I was trying to help because of Bank of America’s caring and responsive attitude.  I can promise you that they don’t care and they won’t respond.  Or, more truthfully, they are so over-whelmed and under-staffed that they don’t know which direction to head first. 

I think it’s a step in the right direction that Bank of America is putting on such a commercial.   It means they may finally be realizing that they have a problem.  Doing something about it would be nice, too, don’t you think?

Now let’s be clear.  I think BOA is a great place to get a loan.  Just don’t expect too much if there is trouble.