_The FHA 203(k) Loan: A Home Repair Loan And Mortgage All In One
Steps to a completed 203k loan
1. Contact a 203k Lender and get per-qualified. We can assist you in finding a lender that we’ve worked with to ensure that you’ll get the best service. 2. Hire a real estate professional. to assist in finding a suitable property. Always choose one that understands 203k. (If you’re refinancing an existing loan with a 203k, a real estate professional is not needed.) 3. Set an appointment with us as your 203k Consultants. As your consultant, Buyers Companion will meet you at your site and review copies of the contracts and agreements required for the 203k loan given to you by your lender that you will need to sign prior to the close of the loan. After our meeting and the HUD/FHA Home Inspection that Buyers Companion will provide, Buyers Companion creates a “Job Specification & Bid Request”, which is a list of the FHA required repair items to be completed. Buyers Companion provides a list of inclusions you may want to add like new cabinets and flooring, window, etc. also forward copies of the various reports to your lender to assist you in the loan process._ |
_203k Consultant Services
The Federal Housing Administration (FHA) has created a loan program that allows a buyer to purchase an existing home or refinance their current one with a minimum down payment and include funding for improvements and renovations; it is called an FHA 203k Loan. For those potential buyers, lenders and realtors interested in taking advantage of the program, the following information will be helpful in understanding the role of the FHA 203k Loan Consultant _203k Advantages
A common and incorrect myth about the 203k loan program is that it has to be for distressed properties such as Foreclosures, Short Sales or Bank Owned Properties (REO’s). This is a totally false representation. The “Full 203k” program can be used for renovations or additions in excess of $35,000 on homes in most areas of the USA, including Chicago, IL, up to the maximum loan amount which is currently over $700,000 in some areas of the country depending on the state and county you choose to live in. The “Streamlined” version of the 203k may be an option for your project. In general, you must have work done that’s more than $5,000 and does not exceed $35,000 in repairs. Those repairs have to be for simple things like carpet, roofing, paint, cabinets, minor repairs, new windows, etc. There can be no structural issues or changes to the project that require blueprints. The Full 203k loan can be used for additions and larger projects up to $125,000 and sometimes more. |