Does your 203K lender have an in-house Draw Department????
This is one very important question that most Georgia buyers and real estate agents fail to ask when comparing mortgage companies that offer FHA 203K Renovation mortgage program. There are many mortgage companies who do "offer" FHA 203K mortgages. Most often, they only offer the Streamline version of the program. Very few also offer the Consultant version of the program. Surprisingly, even less of them actually have an in-house draw department. In fact, there are only a handful of 203K lenders with an in-house draw department.
Why is this important, you might ask????
It is very important because is directly impacts the time that it takes you to receive your draw proceeds. Many of the other mortgage companies utilize one company for their 203K draw center functions. That particular company very often runs about 4-8 weeks in getting the loan is set up and sending out the first check. Many contractors do not want to wait that long.
A company, such as Prospect Mortgage, that has an in-house draw department can disburse escrow funds much quicker. On most occasions, you will have your first check in as little as 5 business days. This allows your contractor to get paid much quicker. In turn, that allows the work to be started much quicker as well.
When considering an FHA 203K mortgage in Georgia, be sure to know what all facts to compare. With an FHA 203K mortgage, it's more than just interest rate and closing costs.
Prospect Mortgage is the # 2 volume 203K renovation loan origination lender nationwide, according to HUD data for the 2010 Fiscal Year.