:::RHMT::: Real Home Made Turbo

General Category => General Discussion => Topic started by: HiProfile on July 17, 2010, 02:21:19 AM

Title: Mortgages - anyone know about the "203(k)" rehab program?
Post by: HiProfile on July 17, 2010, 02:21:19 AM
Are any of you nogs loan officers, realators or past users?


So I'm trying to get a home on the cheap, but most I want in my price range are forclosures. Not a problem for me, but the FHA loan people have poles up their asses and consider a home uninhabitable/unloanable if it's missing the toilet (say evicted owner took it) or a patch of peeling paint. In other words, it's very hard to get most forclosures w/o nearly 100% cash down.

This 203(k) thing basicly gives a loan for the house PLUS what an inspector expects all required fixes to cost. All repairs must be done by a real company, no paying uncle Frank $5000 to replace a cracked window pane. I'm not looking at any tear-downs, just stuff with relatively minor stuff. It's just a clusterfuck of requirements and shit, like a giant contract with all sorts of chutes and ladders.



My main goal is to end up con'ing them into "repairing" any existing garage to fit 3-4 cars. I'd live in a burning barrel with a cardboard roof if I have a big garage like that. ;D
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: BoostedSchemes on July 17, 2010, 10:30:18 AM
Good luck, I spent 16 months working for a mortgage lender as a loan officer, all of the loans that we did through fannie mae / freddie mac were the most strict and those fuckers audited the shit out of all the properties... I would go out on property inspections and mostly chill and not go into the houses with obvious pit bull rings being run out of them but the freddie people would be on the phone about a POS 10,000 loan in the hood to find out why we didnt have pictures of their shitty hallway on the third floor in the closing package.

Your best bet is to find a property, make previous arrangements with the PO, get a person at a local bank to go through the checklist for you and then once you jump through all the hoops apply for realsies.
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: BoostedSchemes on July 17, 2010, 10:34:22 AM
Also, you just need the place to be a legally certifiable 1 fam + dwelling, the shittier the better... I know there are low and high restrictions on repairs you MUST do, I think you need to put 5-10k in escrow in some cases. Also you can pay your uncle 5,000 to repair a window pane they don't give a fuck so long as he is licensed, because you will be losing money doing that. The loan rates are a good number of points higher than what they would give you for a clean property anyways.
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: HiProfile on July 20, 2010, 10:47:43 PM
Well the thing is I know about all the tradesmen I'd need, just they don't own their own businesses. Hopefully I talk to a lender at the place that deals with this stuff locally.

From what I see it's 3.5% down for the existing shithole, then the $ for repairs is all fiananced. My issue is that I want at least a 2 car garage and space for 2-3 more cars, and at least 1.5 baths so I can keep a roomate real happy. And be able to get a loan for it. Those things are like speed/reliability/cost with cars, seems like I'm always having to choose 2 unless I build up a shitbox myself.
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: BoostedSchemes on July 20, 2010, 11:29:59 PM
Building a separate garage, so long as you check up on property size/location requirements pre purchase, is significantly easier than building living quarters or finding a house with the garage you want first.
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: MAJORAHOLE on July 21, 2010, 09:35:25 AM
ya, most of the time (unless you are not in the city) you won't find a garage bigger than the house. around here its in the building code
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: dvst8r on July 21, 2010, 11:34:15 AM
...a garage bigger than the house...

My dream
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: runsfromdacops on July 21, 2010, 06:26:58 PM
itd be cool but i want a nice house also
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: HiProfile on July 22, 2010, 01:55:19 AM
The one I just looked at was fucking 30 amp resettable fuse for THE ENTIRE HOUSE. lol. Had a converted coal burner for a furnace, and light switches would get hot when left on. Windows were new, roof was tits, and had tons of space to enlarge the garage. It was actually decent for the cash, would only take a month & 15K to fix, but had high taxes. Since I'd be pulling permits, the city would end up re-assessing and killing me with even higher taxes. :-\



At this point my money keeps piling up, turbo d16 and b16 beater are staying cheap (30mpg each, liability only), and people keep defaulting. I'm just really impatient when I know I want to buy something.
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: dvst8r on July 22, 2010, 01:00:02 PM
The one I just looked at was fucking 30 amp resettable fuse for THE ENTIRE HOUSE...

LOL, each one of my 6 welder plugs in the Garage has its own 40amp breaker...
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: HiProfile on July 24, 2010, 02:05:12 AM
I'd love to get 300 amp service for welding and stuff a bridgeport in a garage. My neighbor was selling his last year, not sure if his still has it - $1600 complete with all tooling. A guy I used to work for has a 9"/54" Gisholt atm that just needs reassembly. I'd looove to use that too, but I'm pretty sure that one's 3-phase.


Well the one I looked at yesterday was decent, needed minor work, and had a 3 car garage. I had to try hard not to fall in love with that one fact. The garage was 1/2 of the way finished off with insulation and drywalling. It just had a 4" slab that cracked & shifted in a few spots, badly. The house on the other hand was good cosmeticly and structurally. Both roofs are okay but will probably need replacing ala FHA nazi's, same for an aparent pipe/softener leak that trashed some carpet.

It's kinda small (no basement/big shed), but overall it will work. It also lists on the "private remarks" for the realator that it's HUD-owned and qualifys for the streamlined 203k program. Also, it was sold 2 years ago for 75% more than what it's listed for atm.
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: ghettoturbo on July 24, 2010, 07:14:32 AM
hrm, I got an FHA loan and I dont remember any crazy inspection process at all, but then again my place didnt have anything wrong with it (condo  :-\)


-Jay
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: Joseph Davis on July 24, 2010, 11:28:29 AM
I'd love to get 300 amp service for welding and stuff a bridgeport in a garage. My neighbor was selling his last year, not sure if his still has it - $1600 complete with all tooling. A guy I used to work for has a 9"/54" Gisholt atm that just needs reassembly. I'd looove to use that too, but I'm pretty sure that one's 3-phase.


In the $100 and under market, you can get VFDs that act as 3 phase converters for 2hp and smaller motors.  I'm pretty sure that screws you on the bridgeport as IIRC they're a bit bigger. 
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: CSaddict on July 24, 2010, 11:59:41 AM
A converted coal burner is probably cast and will last forever. A service change is not that expensive. Like $1500 in our area or you can do it yourself if you know someone that can help you. And good luck with the 300 amp service in your garage. Not likely.
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: dvst8r on July 24, 2010, 02:59:59 PM
I'd love to get 300 amp service for welding and stuff a bridgeport in a garage. My neighbor was selling his last year, not sure if his still has it - $1600 complete with all tooling. A guy I used to work for has a 9"/54" Gisholt atm that just needs reassembly. I'd looove to use that too, but I'm pretty sure that one's 3-phase.


In the $100 and under market, you can get VFDs that act as 3 phase converters for 2hp and smaller motors.  I'm pretty sure that screws you on the bridgeport as IIRC they're a bit bigger. 

I am running a rotary converter to power this beast, think of a bridgeport + 1/3rd of another bridgeport:
(https://realhomemadeturbo.com/forum/proxy.php?request=http%3A%2F%2Fi23.photobucket.com%2Falbums%2Fb382%2Fdvst8r%2FIMG00051.jpg&hash=d22159fb4ec3d00aff32803e95261d9a8ae476a9)
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: HiProfile on July 26, 2010, 12:38:55 AM
MOTHERFUCK!

Goddamn cash assholes made a cash offer Friday. I found that out 12 hours after all the [special] financing shit fell into place Saturday. I'd be temped to waste a couple of matches & gallons of gasoline if my name wouldn't show up in their previous viewing list.

Oh well, my new plan is to find houses just outside my comfortable price range & submit a real lowball offer. Seems there are too many flippers willing to pay cash for what I'm able to finance for. >:(
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: dvst8r on July 26, 2010, 10:35:58 AM
That sucks, hard to compete against cash.
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: Passenger on July 26, 2010, 10:53:40 AM
300 amps for a home shop? Geez 100 should be fine, or are you planning on having a bunch of people using a lot of old transformer welders at the same time in your garage?
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: HiProfile on July 26, 2010, 11:35:47 AM
I've got two hand and not enough time. :mexi:

Well I went to one house today, all it needs is paint & carpet. The fuckers that lived there must have smoked a carton a day. Each. It's got the picture-shaped stains on the walls. :noel: :noel: :noel: Hella cheap taxes, and lots of room to extend the garage. It also has a full basement, unlike the other house.

The other is in a more upity part of another town, but I haven't seen it yet. I'd prefer that since it comes with a bigger garage and is half the distance to work & Milwaukee.
Title: Re: Mortgages - anyone know about the "203(k)" rehab program?
Post by: Passenger on July 26, 2010, 12:18:05 PM
Painting won't get rid of that smoke smell in the walls, that shit lasts from years to forever.