The FHA 203K loan offers everything you could want for that home needing a little TLC to a complete renovation. Whether it is that great fore-
closure deal, adding that new deck, a new roof, getting rid of unsightly carpet, Or updating appliances. saving the purchase deal that the bank turned down due to property condition or a major remodel that turns an ordinary home into your fantastic dream home, the FHA 203K loan can help you.
The FHA 203K Standard can be used for major improvements totaling over $35,000 and an “FHA Cost Consultant” is required, along with one bid from
a contractor. Up to 5 draws allowed for contractors.
A 203K Streamline can be used for rehab and repairs of up to $35,000 and one bid per contractor. Two draws are issued for the streamline loan, the first is issued 7-14 days after closing of up to 50% of construction costs.
Getting pre-approved will ensure you will know the price range of homes to look for and be comfortable with the monthly payments.
Also pre-Selecting a General Contractor or Sub-Contractors for specific types Of repairs also saves time.
FHA 203K Streamline: Up to $35,000 in repairs
Closing Deadline = 35 days from contract acceptance date
Inspection Deadline = 14 days from contract acceptance date
Appraisal Deadline = 21 days from contract acceptance date
Loan Conditions Deadline = 30 days from contract acceptance date
FHA Standard 203K: $35,000 or more in repairs
Closing Deadline = 40 days from contract acceptance date
Inspection Deadline = 17 days from contract acceptance date
Appraisal Deadline = 25 days from contract acceptance date
Loan Conditions Deadline = 35 days from contract acceptance date
As a HUD approved Consultant / Inspector with regards to the Standard loan, the following are documents I complete in order to expedite your loan:
- Architectural Exhibits
- Specification of Repairs
- Work Write-up
- Identity of Interest forms
- Borrower/Contractor Contract
- Draw Request Forms (up to 5 on standard loans)
- W-9’s for the Contractor
- All specific form required by the Underwriter to close the loan.
HUD Recommends For Your Protection:
Inspections Done Right