I work with several lenders that provide the 203K loans. Since most of my clients use down payment assistance, the repairs have to be completed within 30 days of closing. As you may know, 203K streamline, which can be used for minor repairs and renovations, requires the repairs to be completed within 90 days of closing. The regular 203K is used for more extensive repairs. There is a mininum escrow/repair requirement of $5,000, with the repairs to be completed within 6 months.
Most banks are not offering 203K loans because of the escrow requirements and post closing disbursements. Unfortunately, as a result of this, the lenders that are able to process these loans have underwriting times beyond the norm.
The upside is because of the foreclosure market, 203K loans are a godsend to buyers who's pockets are thin. It is my opinion that these loans will help to continue the market turnaround that we in Central Florida have been experiencing.
Down Payment Assistance Specialist/Loan Officer
Enterprise Mortgage Group
Winter Park, FL