When can I get my draw funds disbursed on my FHA 203K Streamline mortgage? This is one very critical question that most borrowers fail to think about and ask upfront.
When doing an FHA 203K Streamline Renovation mortgage, one very important aspect that many fail to consider is the draw process. Once you have closed on your FHA 203K mortgage, your draw funds will need to be disbursed so that your contractor can be paid. The Streamline 203K program allows for up to 50% of the renovation costs to be paid out up front prior to the work being completed.
How the mortgage company handles that draw process is a big issue. Most mortgage companies do not have their own internal draw departments to handle this function. Instead, they must rely on another company to handle all of their draw disbursements. The main problem with this is that it takes about 4-8 weeks AFTER your closing date for them to have your loan set up to issue the first check.
For those who would like their renovation money in a matter of days, rather than weeks, please call (404) 591-2453. With our internal draw department, Streamline draws are processed in a matter of a few days after your closing date. This allows your contractors to get paid much quicker than with most other mortgage companies what offer 203K loans.
When talking to a mortgage company about an FHA 203K Renovation mortgage, there are some very important questions to ask. Be sure that you are working with a company that actually successfully closes FHA 203K mortgages. You don't want to be the first one they have worked on in months.