Chris,

Frances did a good job of covering things. I'm actually a Renovation Specialist with Wells Fargo, I think the following is what you're needing to know: We can roll those costs into the loan and you can have all of those costs funded right after closing if you use a major retailer such as Best Buy or Home Depot. Since they're national vendors, we can fund them the funds and they can do the installation. For a job this small, it's not worth the extra paperwork to involve a contractor. All you'll have to do is sign off that the work was done and you won't have to pay for a final inspection. If you have enough work that we need a contractor, funds can be dispersed to the national retailer directly to purchase these and funds from your 203k loan can be paid to the contractor to install the appliances. Now you don't have to worry about the contractor fronting cash for appliances and you get to buy them from wherever you want, problem solved!

You can reach me at the office or via email if you'd like to review further.
p) 312.274.4136
rob.weber@wellsfargo.com

The FHA 203(k) Streamline can supply up to $2,000 for appliances when you are directing at least $3,000 toward other basic home repairs. The lender may budget some upfront funds for "necessary" appliances, like a cooking range. It is unlikley that they will cut a check for all of the appliances. That said, it never hurts to ask 8-)

One of the trickiest part of working with FHA 203(k) financing is to find a contractor who can help smooth out some of those rough details. Working with an established contractor who is well capitalized is the easiest way to proceed. There may be a higher cost involved with the project overall, but it may also mean the difference between being able to proceed and being unable to execute the plan.

I handled many 203(k) transactions over the years. The best thing to do is find a lender with a proven background in this type of financing.

I don't have the answer for Chris, but I am putting this here as a placeholder to refresh the question. You FHA203K processors out there: Does the 203K streamline work like a construction loan with progress payments, or is it more like an escrow holdback and the money comes after all the work is done?