The FHA 203K loan enables the home buyer to obtain funds for a purchase and renovations all in one loan:
• One loan to pay for the purchase and renovating of the home
•Finance up to six months of mortgage payments
•FHA Standard Guidelines
•1 to 4 unit dwelling
•Create the dream house you want
•Low scores and low down payments acceptable
•Key strategy in today’s real estate market
The 203(k) loan program offers borrowers the resources to rehabilitate a home that may be in need of repair either the home that they currently live in, or that special fixer-upper opportunity.
The FHA 203(k) program has already provided many buyers with the funds necessary to buy their first home, or greatly improve a current home. The FHA 203(k) loan is available to borrowers of all income levels, to homeowners who plan to occupy the
house, and for homes with one to four units.
What We Do:
The 203(k) Consultant works as part of a team with the home buyer and the mortgage
lender to make the program work efficiently. Consultant fees are set by HUD and must be paid at the time of service
•Feasibility Study-an inspection that estimates the cost of repairs and improvements
•203(k) Work Write-Ups- a written report that provides detailed descriptions of repairs and estimated costs along with contractor bid specifications and other necessary documentation for the rehab portion of the loan.
•After settlement, repair funds are placed in escrow, remodeling begins the consultant inspects the work of the contractor and authorizes the release of the mortgage funds.
203k Consultant Responsibilities
•Determine requirements under FHA guidelines and provide cost/feasibility analysis
•Complete a Specification of Repairs which includes 35 point report of material and labor. Addresses health and hazard issues in accordance with FHA guidelines and any additional work such as upgrades, additions, handicap accessibility, etc.
•Inspect and prepare draw requests
•Prepare and submit change orders
•Review contractors work to ensure quality and specifications are followed