Last month we had a situation happen that I thought I would share. The borrower was referred to me by a friend and felt like they needed to explore other options for their loan.
The lender they had chosen was trying to do an FHA 203k Rehab loan. I believe they were going on two months and were no where close to closing. The borrower only needed around $30k to remodel the kitchen and put in new floors. There was absolutely nothing wrong with the house so we treated this loan as a cash out refinance and closed within 30 days.
In this episode I discuss why I would avoid an FHA 203K at all costs if you have an option to do a cash out refinance.
Feel free to share this with anyone thinking about doing a remodel of their current home. The tip could save them thousands of dollars and tons of headaches.
Thanks for listening! Have a rate day!