When Can I Get My Draw on My FHA 203K Consultant Mortgage?

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Mortgage and Lending with Guaranteed Rate NMLS #151088

When can I get my draw funds disbursed on my FHA 203K Consultant mortgage?  This is one very critical question that most borrowers fail to think about and ask upfront. 

When doing an FHA 203K Consultant 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 Consultant 203K program does not allow for any 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 from the draw request date, rather than weeks, please call (404) 591-2453.  With our internal draw department, contractor draws for Consultant 203K's 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.

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It is always advisable to consult with a knowledgeable lending professional when navigating today's turbulent mortgage and real estate marketplace.  I am committed, qualified and equipped to help you evaluate your options!

 

Also check out:

Conventional Financing Mortgage Program Overview/Updates

FHA Financing Mortgage Program Overview/Updates

USDA Financing Mortgage Program Updates  

 

Programs Include:

 

  • Conventional (Fannie Mae & Freddie Mac)

  • FHA, USDA, & VA

  • Jumbo to $3,000,000

  • Bank Statement Program for Self-Employed Borrowers

  • Foreign National Program

  • Investor Cash Flow

  • Non-Warrantable Condos

  • Georgia Power Leaseholds for Lake Burton, Rabun, & Seed

 

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  • Rodney Mason is a Licensed Branch Manager located in Atlanta, GA.   He can be reached at (404) 591-2453.
  • Providing financing for all cities across Georgia including: Acworth, Albany, Alpharetta, Athens, Atlanta, Augusta, Austell, Avondale Estates, Blairsville, Bloomingdale, Blue Ridge, Bogart, Brunswick, Buckhead, Buford, Canton, Carrollton, Cartersville, Chatsworth, Clayton, College Park, Columbus, Commerce, Conyers, Covington, Cumming, Dahlonega,  Dacula, Dalton, Dawsonville, Decatur, Doraville, Douglasville, Duluth, Dunwoody, East Point, Fayetteville, Flowery Branch, Gainesville, Greensboro, Hampton,  Hapeville, Hinesville, Hiram, Jackson, Jefferson, Jonesboro, Kennesaw, Lagrange, Lawrenceville, Lilburn, Lithia Springs, Macon, Madison, Metter, Morganton, Morrow, Newnan, Norcross, Oakwood, Peachtree City, Pooler, Richmond Hill, Riverdale, Rome, Roswell, Sandy Springs, Savannah, Scottdale, Statesboro, Stockbridge, Stone Mountain, St Marys, Sugar Hill, Suwanee, Thomasville, Thunderbolt, Tucker, Tybee Island, Valdosta, Waleska, Warner Robins, Waycross, Wilmington Island, Winder, Woodstock, and many more.

    Providing financing for all cities across Alabama including:
    Alabama Port, Anniston, Athens, Auburn, Bessemer, Birmingham, Boaz, Bridgeport, Cedar Bluff, Chickasaw, Clayton, Coden, Dauphin Island, Decatur, Dothan, Eufaula, Fairfield, Fairhope, Florence, Foley, Forestdale, Fort Morgan, Fort Payne,Gasden, Grand Bay, Gulf Shores, Heron Bay, Homewood, Hoover, Jasper, Josephine, Madison, Meadowbrook, Midfield, Mobile, Mon Louis, New Hope, Orange Beach, Oxford, Oyster Bay, Phenix City, Prichard, Rainbow City, Saraland, Satsuma, Scottsboro, Selma, Troy, Theodore, Tillmans Corner, Trussville, Tuscaloosa, Vestavia Hills, Warrior and many more.

  • Providing financing for all cities across Florida including: Altamonte Springs, Atlantic Beach, Boca Raton, Bradenton, Cape Coral, Clearwater, Coral Springs, Daytona Beach, Delray Beach, Destin, Fort Lauderdale, Fort Myers, Fort Walton Beach, Gainesville, Hollywood, Homestead, Jacksonville, Jupiter, Key Largo, Key West, Lake City, Largo, Marathon, Mexico Beach, Miami, Naples, New Smyra Beach, Ocala, Orlando, Palm Coast, Panama City Beach, Pensacola, Pompano Beach, Port St Joe, Sanibel Island, Sanford, Sarasota, St Augustine, St Petersburg, Tallahassee, Tampa, Vero Beach, West Palm Beach, & Winter Park, and many more.

 

  • Providing financing for all cities across South Carolina including: Aiken, Anderson, Beaufort, Bluffton, Charleston, Columbia, Conway, Edisto Island, Florence, Greenville, Hilton Head, Johns Island, Myrtle Beach, North Augusta, Orangeburg, Rock, Hill, Spartanburg, Sullivans Island, Summerville, and many more.  
  •   

    Providing financing for all cities across Tennessee including: Athens, Brentwood, Bristol, Chattanooga, Clarksville, Cleveland, Cookeville, Dyersburg, Franklin, Gatlinburg, Greeneville, Johnson City, Kingsport, Knoxville, Maryville, Memphis, Morristown, Murfreesboro, Nashville, Newport, Oak Ridge, Pigeon Forge, Sevierville, and many more

 

All mortgage lending guidelines are accurate at time of post, but are subject to change without notice.  Please call for the most current information.

    

           

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Rainmaker
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Yvonne Jaramillo Ahearn, Esq. (B)
Hawaii Life Real Estate Brokers - Kailua, HI
REALTOR-Broker, CRS, GRI, ABR CLHMS

Good information. Thanks! I know these are tricky loans. Didn't realize about the delays with the draws. I will have to see if the company my clients are going to use have an internal draw dept.  Too bad you are not licensed in Hawaii.

Feb 13, 2011 03:25 PM #1
Rainmaker
418,551
Rodney Mason
Guaranteed Rate - Atlanta, GA
Licensed in AL, FL, GA, SC, & TN

Yvonne....The draw part is often overlooked.  I am not licensed in Hawaii, but we do have at least one office there.

Feb 13, 2011 03:28 PM #2
Ambassador
2,105,331
Michelle Cherie CarrCrowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Yes, this part sounds quite appealing but the logistics are tricky.

Feb 13, 2011 06:26 PM #3
Rainmaker
418,551
Rodney Mason
Guaranteed Rate - Atlanta, GA
Licensed in AL, FL, GA, SC, & TN

Michelle....It's very important that borrowers ask the right questions before selecting a loan officer and mortgage company.

Feb 14, 2011 12:37 AM #4
Anonymous
Gary Smith

The logistics are made crystal clear when you rely on a consultant to guide your buyer through the rehabilitation. Find an approved consultant by searching via zip code here: 203kforum.com

Feb 14, 2011 12:41 AM #5
Rainer
77,497
Jason M. Keith
Caliber Home Loans - Parker, CO
Equal Housing Lender

Rodney, Great information.  I can't do the 203k loans, but being able to come to this post to learn more about it will help me with the borrowers that need this program.

Feb 14, 2011 03:04 AM #6
Anonymous
Garrett Feis

Good Job Rodney.  I'm looking forward to working with your new Draw Department.  This will surely put you above the rest. 

Feb 14, 2011 07:25 AM #7
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Rainmaker
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Rodney Mason

Licensed in AL, FL, GA, SC, & TN
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