The FHA 203(k) is a great loan, and these steps will provide you with a road-map to understanding the process.
1) Buyer works with realtor to find the right property, or owner is ready for renovation on their existing property.
2) Get pre-approved by lender for the price range and repair estimate.
3) Go to contract on the house noting that it is FHA 203(k) financing (for a purchase).
4) Buyer meets with HUD Consultant on site to complete the work write up and estimate of repairs.
5) Lender … (2 comments)
ct: FHA 203K...The Contingency Reserve
- 01/08/12 10:01 AM
What's The Contingency Reserve? The Contingency Reserve is something that needs to be addressed because it's an extremely important part of the FHA 203k loan. The Contingency Reserve is there for cost overruns- it is a component that is put in place to protect the home buyer or home refinancer in case of additional costs or expenses that may arise as a result of the rehab. How Much? The Contingency Reserve can be anywhere from 10-20% of the rehabilitation costs. This rehabilitation number is set aside in case we open up the walls and there are broken pipes, missing, etc- one never … (3 comments)
ct: FHA 203k Mortgage and a sample situation
- 05/03/11 12:00 PM
One of the best parts of FHA 203k mortgages is that over night your property can "Poof" have equity! Who would have thought that is possible in this real estate environment- not most people so let me explain in detail how this works. Current Home Specs and Estimated Value You own a home that is currently worth $300,000- here are the details of the property: 3 Bedrooms 2 Bathrooms 2100 square feet This home as it sits is worth around $300,000 or so. This customer has a mortgage that has a balance of $295,000. So from first glance most borrowers would … (30 comments)
My blog is here to provide information regarding FHA 203K loans and conventional renovation loans for both purchase and refinance. Updates, tips and advice regarding these loans and the industry is what you will find on this blog!
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