FHA 203k Rehab Loan Quick Tip: Utilities Being Turned On At Closing
Most Conventional loans including Conventional 203k Rehab/Renovation loans require from the lender to have all the utilities on and fully working at the time of closing.
FHA Loans and FHA 203k Loans are a differen't beast however and doesn't fall into this myth....
At the time of closing, if the 203k loan is running behind or is not set up to have all the utilities to be turned on there is a solution. You can increase your contingency reserves in order cover the utilities not being turned on at closing thus preventing loan closing delays!
So the answer is: You DO NOT have to have utilities turned on at closing in order to close!
**Please Note - The Reserves can be financed in the loan increasing the rennovation costs by 10% to cover this**
This is a great myth buster because as with any Rehab loan out there, there could be houses that are not in the perfect shape where all the utilities are in working order and thus need this option in order to prevent loan delays.
For more information on 203k loans please refer to my previous post or call me anytime.
Remember, not all Mortgage Professionals offer 203k Loans. Consult with a Renovation Specialist who can guide you through the decision in Streamline vs Full Renovation. By the way...I offer both :)
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Just-In-Time Loans - Mortgage Needs and Advice on Time. (757-692-3464)
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Great post. In some cases we have gone out on as consultants the utilities cannot be turned on as the meter was removed along with the main or sub panels... no power, no problem with the 203k. You know your stuff. you are an asset to the program Sir.