Best of Luck,
For more details about 203k loan, visit http://www.cfs203k.com.
CFS Mortgage - http://www.cfs203k.com
203K - Available for purchases or refinances
Renovation/repair amount up to $25,000 including fees, may be financed into the loan amount
Standard FHA down payment required
Eligible repairs: flooring, kitchen and bathroom remodels, plumbing and electrical upgrades, HVAC replacement, painting, decks, patios and more
Ability to close on the home in "as is" condition and make approved repairs/renovations within 120 days
203B with Repair Escrow - Finance up to $5,000 for minor repairs/renovations into your loan amount
Repair funds escrowed and disbursed after closing
Repairs can be seller funded. Only minor repairs required by the appraiser or underwriter may be included. Available for purchase or refinance transactions. A contingency reserve of 50% (cost of repairs at 150%) must be included. A contingency reserve of 110% is allowed on HUD REOs. All repairs must be completed within 30 days of closing.
I know all of these stipulations can be confusing and overwhelming. If you have any further questions, please let me know and I will be glad to guide you to a mortgage consultant who can make this process much easier to understand.
As one of the largest direct lenders in the country, Prospect Mortgage offers one of the largest selections of loan programs available. In addition to the standard conventional, FHA, VA, USDA, and Jumbo, we also offer a wide range on Renovation loan programs. Our Renovation programs include FHA 203K (Streamline & Consultant versions), HomePath Renovation, and HomeStyle Renovation.
For the FHA 203K program, some lenders only offer the Streamline FHA 203K. That Streamline version does not give you any options should you encounter the need for the Consultant program for structural repairs or if you are looking for renovations in excess of the Streamline's $35,000 limitation. Working with a direct lender who offers bother the Streamline and Consultant versions is very important.
For HUDâ€™s Fiscal Year ending 09/30/12, Prospect Mortgage was the 2nd largest volume FHA 203K lender in both the country and the Metro Atlanta market. At Prospect Mortgage, we have a dedicated operations center that only handles our renovation mortgages.
Selecting a loan officer that knows the program inside and out is the key. If your loan officer is not experienced in closing a lot of these types of mortgages, then it will be a very challenging experience for you. Allow an average of 45-60 days for your 203K closing. Prepared buyers are often able to close sooner than that. Some have closed in under 30 days when they are very prepared.
All renovation work will need to be completed by a licensed and insured contractor. I have heard that some lenders may require the use of certain contractors. At Prospect Mortgage, you are free to use any contractor that you wish that meets the minimum requirements as we do not maintain any type of approved contractor list or provide contractor recommendations.
Other than for appliances in certain situations, you may not use any of the big box retailers (i.e. Best Buy, Home Depot, Loweâ€™s, etc). This is because they will not sign any of the HUD required 203K contractor forms.
Use of a HUD Consultant is required on the Consultant FHA 203K and highly suggested on the Streamline version.
Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified you purchase, you can submit your request online at http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing
Here is a link to HUD's web site that explains the difference between a streamline and regular 203K loan. Basically, the streamline gives you a loan up to an additional $35K for home improvements.
Hope this is helpful!
Prudential Connecticut Realty