Mike Young, 203k Consultant Northern CA

Once things are going well it seems like you would leave them alone and enjoy the ride. Not so with so many of the larger banks, however.

Wells Fargo has decided that the permit fees which are estimated, if not used for that purpose will be paid donw on the mortgage now and no longer will be moved to the contingency which has been the policy of all of the lenderws so it could be used on other improvements that may be needed.

The borrower is borrowing the money for 30 years and this money quite often can go to paying on items of construction that would keep the borrower from having to come out of pocket and pay for. The indication is that any line item savings will now be paid down on the mortgage as well and not be moved to contingency to pay for something that was an overrun. Too bad as this will create additional burden on the borrower's from time to time.

I know we have had many projects that would have gone south except we achieved savings that were used to put it back on track, This will bite you later.

Thank goodnes all lenders haven't gone this way... M

The consultant's job is to write up the bid specification and that has some "due dilligence" that goes along with the responsibility. It is often interesting to me how the RE agent and sometimes the Lender will push to get this done in 3 days and start calling every day thereafter to push this to an end. Lets look at the process...

1) Lender gets the loan started, they typically have it a week or two then pass it to us

2) We make an inspection and inform everyone that it should take about 4 days to a a week to gather all our data and put to gether the bid specifications... then it goes out to bid to the contractor

3) Contractor may take a day or two (many times a few days more than that to provide their bid to us

4) The contractors numbers are input and checked to see they are reasonable.

5) The report get finalized and sent to the lender so the appraisal can be ordered.

6) The appraiser takes about 4 days to complete their report, then

7) The loan closes

Before 1994 the process took about 3 months or more to close a 203k in many cases, In 1994 when consultants were brought into the system it was designed to take about 6 weeks, but none of these 6 weeks was for the consultant, just the lender, etc... lol. NOT.

The consultant must do their due diligence too. Give us a week on smaller projects and up to two weeks on larger projects, and you won't be dissapointed. Just don't get everything else completed and give us 3 days to do all our work, there is more to it than that...

The 203k loan process can go quite fast if you provide a reasonable time for the inspectons and report writing.

M

Just about to wrap up another FHA 203k in Guerneville, CA. This was such a cute little home but the septic system had failed. This is just what the program was designed for.

It was apparent from the start that this was going to be a small job as everyone knew the septic system had failed and that is all that was to constitute the "scope of work" but when we got to the property for the first time it was raining and the skylight was leaking with water all over the hardwood flooring. We spent the first half hour of the inspection drying the floor to minimize the damage that might have occured had we not been there.

The job by any standard was a small one but since the rain came it showed all of us there was another issue at the home that no one had anticipated. Greg Loberg of Well Fargo Home Mortgage was the lender on this project. He is a pleasure to work with as he gets them closed.

So many lender profess to be 203k lenders only to find that after 60 days they pass it off to someone like Greg who can close in 30-45 days consistently. Keep up the good work Greg. Greg should be your choice for renovation lending from San Rafael to Guernville.

Hey guys and gals, I'll be visiting Charlotte, Spartanburg, and Columbia through the end of the year. You have been doing wonderful and keeping the 203k movement strong there and I wanted to congratulate all of you. David Sovde in Columbia SC, Walter Wilson in Charlotte NC, Brad Johnson in Spartanburg SC.

David has done exceptionally well from Columbia to Charlotte but primarily staying in SC with "David's 203k Consulting Service". He is a real asset to anyone looking for a good 203k consultant. He has been covering all the way to the coast.. Charleston for us. Our new guys in Charleston will be taking that area over right after the first of the year.

Brad Johnson owner of Absolute Inspection Service LLC has been covering the Greenville, SC and surrounding areas. What a pleasure it is to work with Brad, Our lender are very happy with his service in the 203k consulting and his reports are very thoughrough. Great job Brad.

Last but certainly not least, our Charlotte NC leader is Walter Wilson Insepction & Testing, a nicer person, better home inspector, and 203k consultant I don't think you will find anywhere. Wonderful to see you get into this profession Walter. Though it took me the better part of 2 years to convence you to start, it was clearly worth the wait. You do it all right.

Thanks for being a part of the Mike Young Team Guys. We really think you are tops.

Hey there I see you have a new 203k consultant in an old familiar home inspector's suit... KC Johnson of ProCheck Home inspections. While KC has been inspecting homes for a number of years he has heard the call of the FHA 203k and other renovation loans and answered it.

If you have a home that is in need of repairs now KC can add the 203k Consultant's report for you and help get those loans closed faster.

Lots of you are making and getting 203k offers on this type property and we are all appreciative. There are a few out that that continue to live with the myth that using the 203k loan might hamper the process or cause the loan to close slower... NOT TRUE.

If your lender can close a standard FHA loan (203b) in 30 days there is no reason to take longer to close a full 203k. KC knows the secret to your success now and can walk you through the process. If your lender says it can't be done, you may need another lender. Our lenders do it all the time.

Whenever you have a renovation loan it is just good business to put in your contract 45-60 day close in case something else comes up, a credit glitch or other issue but it won't be due to the 203k consultant that held it up. KC has been trained and is knowledgeable in how to make that process go much smoother than you might expect. Give him a try on your next 203k project.