How long does it take to complete a 203K? This can be a simple question with complex answers. Depending on which 203K is used it can vary. It can also vary by the size of the property and what's actually being done to that property. Again a streamline 203K loan are repairs that are under $35,000 and a full blown are over $35000. With that said the typical time frame involved in a streamline is 30 days or less and with a full blown it's usually 30-60 days. Now there are contributing factors such as, what are the repairs that are actually being done. What contractors are being used, and how soon the project can been funded appropriately. Also whether the contractors work swiftly.
I've actually done a full blown 203K in 30 days. It was orchestrated well from the beginning and the contractors were diligently working to perfection. On the other hand I had a client who wanted to use his friend to do a full blown 203K project. Let's say the property was bought at $154,900 the 203K loan was funded over $100,000 per the FHA Inspector's recommendations and besides the frame work, electrical work, & plumbing, that's where that project stopped at. That was in December of 2008 and now I have it back on the market to be sold as a short sale; http://mrislistings.mris.com/Matrix/Public/Portal.aspx?k=1972413XQTUM&p=DE-137113063-354 Look at the pictures on the inside, now if it's not correctly done this could be the results. Most results are not like this but the process could be longer than the normal time involved.
203K loans are very popular these days and if done by experienced individuals such as the lender, the 203K Consultant/FHA Inspector, Licensed & Boned Contractors, and with a Knowledgeable, Top, Experienced, and Professional Real Estate Agent (hint, hint, lol) to explain the entire process to you, you should have a smooth transaction.
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Damon J. Brockenberry (Damon The Agent)
Washington DC Area Real Estate Specialist
Servicing Washington, DC, Maryland, & Virginia
cell: 240-694-6460 e-mail: sold@damontheagent.com
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