THE FHA 203(K) PROCESS

By
Mortgage and Lending with AnnieMac Home Mortgage NMLS #38670

 

 

 

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 orders appraisal of the property. The appraisal must contain the before and after renovation value of the home.

 

6)    Close on house escrowing the funds for repairs and upgrades.

 

7)    Contractor starts work and draws down funds for repairs and upgrades.

 

8)    Move in to your new home or settle in to your new and improved home.

 

 

House with couple

 
 

The FHA 203(k) inspection, work write-up and cost estimate are essential elements in processing the Section FHA 203(k) insured loan, in addition to the underwriting steps applicable to a regular mortgage. Therefore, when a consultant is used, it is the responsibility of the consultant to assure that the architectural exhibits are properly prepared.  

These steps will help guide you through the FHA 203(k) process and get you into the home of your dreams.

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Mike Young 07/22/2012 08:36 AM
Topic:
Mortgage / Finance
Location:
New Jersey
Groups:
Reverse Mortgage Specialists
The FHA Mortgage Group
FHA 203-k and FHA 203-k Streamline Loan Group
Tags:
ct
md
pa
ma
nh
nj
fha refinance
fha purchase
fha 203k mortgage process

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Rainmaker
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Mike Young
203kOnLine.com, covering California & most other states - Fairfield, CA
FHA 203k Consultant 916-758-1807

Jeff, keep putting the info out there, good job, don't worry about the comments, look at how many people are reading the post. You may be surprised

Jul 15, 2012 07:28 AM #2
Rainmaker
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Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

The 203k loan is an under-utilized tool. Many buyers could create equity by using the FHA/203k loan to buy and renovate homes that need some work.

Aug 10, 2017 09:34 PM #9
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Rainer
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Jeff Onofrio

FHA 203k Lender and Homestyle Reno Specialist
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