203k mortgage lenders

The 203K program is vital in this market with a high number of fixers.

Couldn't agree more! The 203 program is a great product!

Need an FHA 203K Inspector?

Fred Sweezer Sr.,

is a HUD-  Approved 203K Consultants.  He plays an integral part in the successful completion of an FHA 203k loan transaction and guarantees rapid turnaround time. 

What is the 203K program?

The 203K program, sponsored through HUD, is a purchase-renovation program in which an all-inclusive loan serves to both acquire a real estate property and restore or upgrade the property to current marketable conditions. These programs provide financing for "fixer-uppers", rehabs, or foreclosures in any condition and offer the opportunity to repair, update and customize the home into a "dream come true." Currently, HUD only offers their 203K loans to first-time homebuyers and non-profit organizations HOWEVER, private lenders (such as Wells Fargo, Countrywide, & American Home Mortgage) has begun to offer a conventional version of the 203K to customers, including real-estate investors.

How does the program work?

The process begins with finding a piece of property that is in need of $5000 or more in repairs, as well as a lender who provides a purchase-renovation program. The property can be a 1-4 unit, condo, mixed-use property, or even a manufactured home.  Repairs can include structural repairs, septic or well replacement, basement waterproofing, lead-based paint stabilization or abatement, painting, adding a deck or pation, appliances, energy improvements, or upgrading any components in the home such as the roof, plumbing, floors, HVAC systems, etc.

A work write-up is then requested from a HUD-approved consultant. A work write-up is NOT the same as an inspection; home inspections are NOT needed for the 203K program. The work write-up is a detailed list of repairs, including estimated prices of materials and labor.

An appraiser is then called to provide one "as is" appraisal and a second "after improvement" appraisal. The appraiser is given the consultants work write-up plan and cost estimates to determine the market value. The lender bases their final loan amount on this after-improvement market value estimate.

After the loan and write-up are approved, the work begins and must be completed within 6 months of loan closing and under the supervision of the general contractor (chosen by the buyer) or, in some cases, under the direct supervision of the buyers, themselves. The consultant, at the buyer's request, performs draw inspections to ensure the quality and progress of the work as well as to release the renovation money from escrow.

In the end, that "fixer upper" property becomes a dream home!

Fred Sweezer Sr HUD/FHA  Consultant S0712

FHA Compliance Inspector T477

1-562-234-2689

fax      361-5996