The 203k loan process is different than the traditional loan process. It is recommended that you only work with exclusive renovation specialists.
The 203k loan typically takes 45 to 60 days to fund depending on your scenario.
Dedicated specialists have streamlined the process to help lead you to a successful funding. Here is what you can expect:
STEP 1: SCHEDULE A RENOVATION LOAN CONSULTATION
- Goals & Objectives: What are your goals and objectives?
- Loan Pre-Approval: Get pre-approved so you can shop with confidence.
- Project Team Connection: Connect with your team which may include Realtor’s, Inspectors, Designer, and General Contractors that will make your dream home renovation a reality. Assembling the right team is the KEY TO SUCCESS!
Tip: Here is how you should prepare for your Renovation Loan Consultation. CLICKHERE
STEP 2: FIND A PROPERTY
- Find the best locations, best renovation candidates (good bones), for the best price.
- Create a renovation and repair estimate with your general contractor.
- Have your agent estimate the After-Renovation-Value.
- Write your purchase offer contingent upon FHA 203k financing approval.
STEP 3: PROPERTY INSPECTION & RENOVATION BID
- Complete home inspection, meet with General Contractor (optional designer) and HUD consultant (if applicable) to align resources and bid numbers.
- If 203k Streamline (<$35k and no structural repairs): A HUD consultant is optional.
- If 203k Standard (>$35k and/or structural repairs): Your HUD Consultant inspects the property and prepares a Scope of Work Write Up.
- Appraiser completes “As-Is” appraisal to determine value at closing, and then uses the Work Write Up and bid to determine after-completion value.
STEP 4: LOAN SUBMISSION AND APPROVAL
- Your loan package and appraisal are submitted to underwriting for final approval.
- Provide any additional loan requirements for final approval.
- CLOSE YOUR LOAN and FUND YOUR RENOVATION ESCROW ACCOUNT!
Note: The typical process is 30-60 days, 45 days average. Team work and understanding the steps in the process is the key to a smooth closing.
STEP 5: RENOVATION PHASE
- Welcome package sent out to you that explains the draw process in detail.
- Funds are disbursed as project phases are completed.
- Inspections are required prior to each disbursement.
- Final inspection completed.
For more information please call 970-682-3325.
HOW CAN I HELP YOU?: