If so, you may want to check with your mortgage professional to make sure they are still able to deliver this product. Yesterday, HUD suspended a major lender, TBW, from doing FHA mortgages leaving thousands of mortgage brokers and their clients in a lurch. If you're working with a mortgage broker with a standard FHA mortgage that was being brokered to Taylor, Bean, Whitaker, your mortgage originator should be able to find a new source for the financing. However, it's my understanding that for mortgage brokers, TBW was one of the few lenders offering FHA 203k's to mortgage brokers and their loyal clients.
203k mortgages have been gaining in popularity, especially the Streamlined FHA 203k, as they allow home buyers to make repairs to homes with one mortgage at a rate lower than what you would typically find with a construction loan. With the amount of homes that have been neglected due to the economy, 203k's have been a good match.
I feel badly for mortgage brokers being thrown yet another curve ball. If you are in the process of getting a 203k with a mortgage broker, hopefully everything is fine but I recommend that you contact your mortgage originator to make sure.
NOTE: TBW is not Mortgage Master Service Corporation's source for FHA 203k (or any) mortgages.
UPDATE August 12, 2009: It's my understanding that Bank of America may be taking over TBW's servicing of FHA mortgage loans.