Financing for a FHA 203k loan?

I’m a first time homebuyer who qualifies for a VA loan but the house I’m trying to buy is a foreclosure so it’s not VA approved so I’m going through the 203k option.

The problem is that I don’t want to finance any of the repairs into the loan since I have the cash to pay for the fixes. The appraiser came out and said the only required repairs were to carpet 2 rooms. The lender is telling me I’m legally obligated to finance that cost into the loan even though I have the cash to fix it immediately. Or can’t I place that cash into an escrow account instead of having the bank lend money to place into an escrow which would just be redundant and unnecessary? Is my lender not being completely honest with me?
I may not have been clear. I want to carpet the entire house but I want to pay with cash. It’s ridiculous to finance carpet into a 30 year loan. What I want to do is place all that money myself into the escrow account to satisfy the banks requirement before closing. What they’re saying is that my cash is no excellent I have to have them lend me the money for the escrow account. Why can’t I use my own money for the escrow

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This entry was posted on Sunday, September 6th, 2009 at 9:50 am and is filed under FHA Appraisers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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4 Responses to “Financing for a FHA 203k loan?”

loanmasterone says:

September 6, 2009 at 9:50 am

I am at a loss as to why the lender would refuse your request to place the funds in escrow with the stipulations that the carpet be repaired and signed off on by the appraiser that conducted the original appraiser.

Question plenty of questions about this mortgage, after all you are the one that will eventually wind up paying for the mortgage you will accept.

I would closely inquire of my loan consultant as to what the difference might be as long as the work is completed and signed off on by a licensed appraiser that is approved by FHA

If they still insist on doing it the way they want you can always buy the loan down once is it closed by the amount of the repairs.

What was your reason for applying for a 203b FHA loan as oppose to a regular FHA mortgage loan?

Of course you might leave your funds in your bank account drawing interest as the mortgage interest you will be paying on the mortgage loan amount will be tax deductible.

I hope this has been of some benefit to you,excellent luck.

"FIGHT ON"
New Mortgage Info » Blog Archive » Financing for a FHA 203k loan? :: FHA Loan Rates says:

September 6, 2009 at 5:03 pm

[...] admin wrote an fascinating post today onFinancing for a FHA 203k loan? :: FHA Loan RatesHere’s a quick excerpt [...]
New Mortgage Info » Blog Archive » Financing for a FHA 203k loan? :: FHA Loan Rates says:

September 7, 2009 at 12:31 pm

[...] admin wrote an fascinating post today onFinancing for a FHA 203k loan? :: FHA Loan RatesHere’s a quick excerpt [...]
Bill Grange says:

October 2, 2009 at 9:51 pm

I bet yoo come out better in the end if you finance the repair and buy gold with the extra cash.

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