Are these 203K closing costs to high?

[Brian Beadle]

Hello all, I have recently decided to try my hand at a 203k and see what all the trouble is about. It seems pretty straightforward, as long as you have your contractors in agreeance with your payment terms then you shouldn't have too much of a problem. The only thing that is worrying be a bit is these closing costs. I know 203k is an expensive loan to begin with but does this see correct to you?

[Steven Gesis]

Originally posted by @Brian Beadle:

Hello all, I have recently decided to try my hand at a 203k and see what all the trouble is about. It seems pretty straightforward, as long as you have your contractors in agreeance with your payment terms then you shouldn't have too much of a problem. The only thing that is worrying be a bit is these closing costs. I know 203k is an expensive loan to begin with but does this see correct to you?

 Brian-

The goal with a 203k is to get a competent contractor that has done it all before, you can google 203k contractors for your area and see if anyone comes up, typically the guys that have a paid ad or have a strong organic search and populate on page 1 are going to be fairly knowledgeable in the space and most likely have done one in the past. 

Yes, the fees are a little higher however, the upside is the fact you are not taking your own cash out of pocket to complete the rehab. 

Another bit of advice, is use a general contractor who can bring in the trades so you do not have to have multiple contractors who need to get vetted, write estimates and so forth. It will be way easier. If you ask your lender he/she may be able to give you a recommendation on a contractor. 

The secret is the paperwork and a contractor who has the financial means of carrying your project. Many contractors fail at the paperwork level, then the next fail is when they find out they get no money upfront for your job. This is not always the case in regards to the money upfront, it depends on the lawn product if you go with a limited/streamline product or the full/standard 203k (they changed the names of the loans just recently).

Feel free to call me or inbox me, I have a lot of knowledge when it comes to 203k.

#TeamTurnkey