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 (1 comments)
nh: FHA 203K Mortgages and First Time Home Buyers
- 03/22/12 06:02 AM
It’s important for the first time home buyer to know what the expenses are when they are buying a home. Many first time buyers get stuck on what the down payment and closing costs are, but they don’t look beyond that. They need to consider what they may need in addition to those items. The down payment and closing costs are part of the picture, but not the complete picture. Other items to consider: does the house need painting? do I need new carpeting? how’s the landscaping? These things are typically thought of once the first time home buyers get into (0 comments)
nh: 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 (2 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!