Financing in 60624>Question Details

Kenneth, Home Buyer in Chicago, IL

FHA203k loan

Asked by Kenneth, Chicago, IL Sun Dec 27, 2009

Do you have to start paying the FHA203k loan as soon as you start the rehab work?

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Great detailed answer, thanks!
0 votes Thank Flag Link Sat Jan 26, 2013
You can escrow as much as 6 payments. Typically, you won't have a payment for about 45 days after closing. So you probably won't need to escrow that many payments. You should be done with your renovation faster than that.
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0 votes Thank Flag Link Fri Jan 25, 2013
Of course, you do. It will be a good idea if you can live with your parents or relatives in the meantime that your repairs been done.

Best of Luck,

Maria Cipollone

Century 21 tenace
0 votes Thank Flag Link Mon Dec 17, 2012
Yes that is correct you can escrow up to 6 months of mortgage payments. I had a customer just last month that bought a home that need extensive rehab work ($89K) and they are continuing to live in there apartment while the work is being done. Otherwise they never would have been able to afford two payments. Its a great feature of the FHA 203k rehab program. If you need any help I am more than willing to answer any questions. I also write blogs on 203k's that you can get more information. Good luck!

Jeff Onofrio
FHA 203k Expert
P 609-217-9409
0 votes Thank Flag Link Mon Jan 24, 2011
You have to be careful on the option to escrow payments for 6 months. These payments will cut into the amount you have for rehab since they become part of the amount needed to make the deal work. This can cause the number to not work because there is simply not enough room in the LTV's
0 votes Thank Flag Link Thu Dec 30, 2010
The first poster is correct. You can escrow in your payments for the duration of your displacement (from your home) up to six months. I.E. You can't (knowingly) be displaced for three months and ask a lender to escrow six months payments. You can ONLY do this on a standard (FULL) 203(k) loan. On a streamline, your payments start when they normally would.

Otherwise, you skip your first month while servicing for your new loan is setup (they can't accept your payment if they don't know you have a mortgage with them yet), just like any other loan.
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0 votes Thank Flag Link Fri Jan 15, 2010

Hello again! The answer is no. You can delay payments up to 6 months. If you would like to contact me for any specific information about 203k loans and your situation please feel free to contact me at the number below.

Kurt Clements
Senior Vice President
GSF Mortgage Corp
3933 75th Street
Aurora, IL 60504

Office: 630.806.7016
Cell: 630.430.1091
0 votes Thank Flag Link Mon Dec 28, 2009
All mortgages do not have a payment due until the 1st day of the 2nd month after closing, so the answer is
0 votes Thank Flag Link Sun Dec 27, 2009

You can actually get upto 6 months with no payments. They can be escrowed into the loan.
Please take a look at our web site to find out more information about the 203K...
You can contact me anytime if you have questions or would like to get pre-approved.

Steve Smither
Senior Loan Originator
Ardain Mortgage Corp.
847-942-5151 Cell
847-963-1000 Office
0 votes Thank Flag Link Sun Dec 27, 2009
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