How to get 203k loans done FAST

What is the FHA 203k loan and when would they take longer than a normal FHA loan?

FHA 203k loans are just simple FHA loans with a twist.  With the 203k loan you can finance the cost to acquire the property plus the cost of improvements with only a 3.5% down payment of the total.  What makes them take longer is not the processing persay but rather the up-front requirements.  If you want to close an FHA 203k in less than 45-60 days, you will need to make sure the following is done up front.

1. Get the HUD consultant out to the property.  This is the inspection that must be done by a qualified Hud consultant.  (see below for the guy I recommend, John Taylor).  Note that the Hud consultant cannot be the contractor doing the work.  
2. Get with a contractor to get pricing on the scope of work from the Hud Inspector plus whatever else you want to have done to the home.
3. Get the contractor approved to do 203k loans with the lender. 

The above can be a 2-3 week process which is why getting this loan done quickly without the proper preparation is nigh impossible.  

How can you close in 30 days or less on a 203k loan?  

1. Get with your lender EARLY in the process.  Discuss the options as to the 203k loan.  They are more costly than regular FHA loans and the total costs should be reviewed by the borrower.
2. If you identify a home that needs work and MUST close in 30 days or less, you should have a Hud Consultant out before you ratify.  The cost is less than a home inspection and you can actually use this in lieu of a home inspection should you ratify.  This will give you an idea of what you "must do" and what you "can do" to get the property financed by FHA and Conventional down the road.  Having this done early on is a pre-requisite to closing quickly.
3. Get the Hud Consultant's findings to a contractor for pricing.  Once you have the total cost, you can have the loan officer update the numbers showing more accurate costs and payments.
4. If you know the 203k is going to be an option, get the contractor approved at the outset.  This is a week process (if all goes well) and can't be avoided.  

Hope this helps!  Below is the information for the Hud Consultant we use. Please call or email with any questions.

v/r
Rick Elmendorf


Approved HUD 203(k) Consultant