203k First Time Home Buyers Guide, Â Call Now 323 309 9722
The 203k Loan Program has been around for more than 30 years, it gives the qualified borrower enough money to buy a home and repair the home as long as the home meets Â certain appraised criteria after construction repairs are completed. Most hud homes are sold below fair market value. What this means is, a buyer can purchase a hud property, repair the property and enjoy instant equity once the repairs are completed using the 203k loan program.
You will need an experienced 203k Consultant who can evaluate the property, and identify FHA and HUD 203k requirements, and guidelines. The 203k Consultant should be able to prepare a cost estimate and Contractors bid package.
At Same Day 203k Consulting, we help educate our clients.. we guide them through the FHA 203k loan process. We complete all the 203k Consultants paper work in a timely manner. Most of our clients are first time home buyers, we take pride in our work, as trained professionals we are dedicated to our clients, and servicing there needs. We work with most lenders and mortgage companies.Â
Getting the most out of your 203k Inspection.Â If you are buying a hud home or a foreclosure, you may want to get a home inspection.Â The 203k feasibility Â inspection will let you know what kind of repairs will be required to comply with FHA, and HUD guidelines. It will also let you know if you are getting in over your head.Â You should always meet the home inspector at the house.Â Remember the inspector works for you, the 203k inspector should know that the property is a hud home or a foreclosure. I always recommend that my clients provide me with a wish list, before we start the inspection process.
The following is a list of documents, and requirements that an experienced 203k Consultant will require from a potential 203k Contractor:
1. Make sure the Contractors License is valid and in good standing!
2.Â Request at least two Contractors references, Â the borrower should verify those references.
3.Â Recommend that the borrower visitâ€™s at least two of the Contractors current Â Construction Job Sites.
4. Make sure that all of the Contractor and Sub Contractors employees working on your property are covered by the Contractors Workmanâ€™s Compensation and Liability Insurance. Â
5. Request a copy of insurance binder showing general liability and workers compensation, holding you the borrower harmless.
6. Make sure that all Contractors are aware,Â there are NO up front funds available, all funds are paid out after work is completed and inspected by the 203k Consultant.
7. Provide a completed IRS W-9 form.
8. All disbursements will have a 10% holdback.
9. Complete a Homeowner/Contractor Agreement.
10. Provide a Mechanic's Lien Release.Â
Â Â Â Â Call Same Day 203k Consulting 323 309-9722
Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â HUD Approve Since 1995
Serving Southern California for nearly 20 years!
Â the 203k consultant that all hud you fill out