I think this is where the confusion is coming into play. Can any of the loan agents replying on this blog confirm this for me?
My approved 203K loan is with retail and not wholesale with B of A.
Not only is the 203K alive and well; I believe it has the potential to completely transform our industry. I am working on the development of a workshop that will be presented to consumers and agents alike all over CA to educate and inspire how using the 203K can literally allow a consumer to modify a property to their specific criteria. I expect the 203K will be a large part of my business in 2012. I encourage all agents to learn about it and embrace the product fully.
Best of Luck!
I have an approved 203K loan but it was approved 5 weeks ago. I just spoke to an agent that I had a backup offer on a property (approx $12,000 worth of work). I saw that the property was active again so I called him. He told me the reason the buyers backed out was because B of A is not doing them anymore and cancelled his loan. He didn't contact my agent about the backup offer because it is also a 203K. He also said that he heard that many lenders are following suit.
I also have an offer (I just made this offer this week) on another home that is a short sale that is about a month away from a decision being made. My offer is $25,000 higher than the other. I am not fearful that I will not get a home if 203K goes away.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
The preceding answers give you a good idea that the 203k loan is still available. However, the number of lender that do them seems to have been reduced pretty significantly. A recent client that wanted the program had problems finding a lender. I see that Douglas said that Wells Fargo was still doing them, but I have heard that they closed down that department... so checking directly with Wells Fargo may be in order.
Good luck and be sure to update us with how your client fairs in their search.
The FHA 203k loan has never gone away, I know because i have originated over 200 of these loans since 1974. I am still originating them and if you want more information you can call me at 800-686-8242. I am also giving a FHA 203k presentation at the Orange County Association of Realtors on the FHA 203k program on August 27th. FHA 203k Specialist and senior loan officer-Alex Mukai
We have an entire dept at Flagstar that handles 203k loans. Yes, they are typically handled directly through banks, not brokerages. If you would like so assistance getting your buyers a 203k loan, please feel free to call me.