FHA 203K Loan Information

Here is a sample of  FHA 203K Resources that 203kMortgageLender.com offers

 

Videos:

FHA 203K: 10 Steps from Offer to Closing

 


Articles and Ebooks:
In addition to the video we also have the Print Version of the 10 Steps from Offer to Closing. This can be a useful resource when you’re meeting with your Real Estate Agent in the event they aren’t familiar with the 203K program.

Here is an excerpt:

10 Steps from Offer to Closing

Currently there are many Home Buyers  who are interested in purchasing a home with the FHA 203K but unfortunately there aren’t many Real Estate Agents that are aware of the program or feel comfortable doing the transaction, and most Mortgage Lenders either can’t, won’t, or are just not familiar enough to do them.  So today we are going to cover an overview on the 10 Step Application process from beginning to end, when using a 203k Loan to purchase a property.

Knowing what to expect and what is required will help you keep your Agent on track and help you prepare in advance for the steps to be taken to efficiently process your transaction and limit delays. You might also want to refer your Real Estate agent to this guide to help them get a better idea of the 203K transaction if they’re not familiar with the program.

Before we get into the 10 steps you must know there are two types of 203k loans that you can use to buy & fix up a property.  There is the Standard 203K and then there is the 203K Streamline.  So what’s the difference?

A 203k Streamline – can be used for rehab & repairs up to $35k and a Contractors bid is all that’s required.

A Standard 203k – can be used for major improvements over $35k and a “Cost Consultant” is required along with a Contractor’s bid.

For more information about the Standard and Streamline 203k loans download the FHA 203K Buyer’s Guide . Now let’s go over the 10 steps.

Step #1 Selecting a Property (Home Buyer)

The property can be a Single Family Residence, 2 to 4 units, Condo, or PUD.  There are different maximum loan limits that apply and will vary depending on what county the property is located and whether it’s 1 to 4 units.  To find out what the maximum loan limits are in your area you can go to our blog.

 

Step #2 Making the Offer (Home Buyer and Real Estate Agent)

This is where You and your Real Estate Agent take out a pencil and paper or calculator and figure out the purchase price that you are offering the seller while taking into consideration the amount of money needed for repairs which will be added to the purchase price.

If you have a chance to meet with your contractor before putting in the offer that would be helpful, unless you have a pretty good idea of how much money will be needed to bring the property up to an acceptable standard or beyond.  Keep in mind of what the future value will be after repairs and that the new loan amount will be based off of the  purchase price plus repairs or 110% of the after improved value whichever is less.  The offer you make to the seller is the “As Is” price that means you are making an offer on the property in its present condition and that is the only price that concerns the seller.

To download the complete video & article FHA 203K Loan: 10 Steps From Offer to Closing as well as receive the FHA 203K Buyer’s Guide  go the 203K Mortgage Lender website and sign up.  Once you sign up you’ll get updates on the 203K Loan program, and additional resources.


Currently there are many Home Buyerswho are interested in purchasing a home with the FHA 203K but unfortunately there aren’t many Real Estate Agents that are aware of the program or feel comfortable doing the transaction, and most Mortgage Lenders either can’t, won’t, or are just not familiar enough to do them.So today we are going to cover an overview on the 10 Step Application process from beginning to end, when using a 203k Loan to purchase a property.

Knowing what to expect and what is required will help you keep your Agent on track and help you prepare in advance for the steps to be taken to efficiently process your transaction and limit delays. You might also want to refer your Real Estate agent to this guide to help them get a better idea of the 203K transaction if they’re not familiar with the program.

Before we get into the 10 steps you must know there are two types of 203k loans that you can use to buy & fix up a property.There is the Standard 203K and then there is the 203K Streamline.So what’s the difference?

A 203k Streamline – can be used for rehab & repairs up to $35k and a Contractors bid is all that’s required.

A Standard 203k – can be used for major improvements over $35k and a “Cost Consultant” is required along with a Contractor’s bid.

For more information about the Standard and Streamline 203k loans download theFHA 203K Buyer’s Guide . Now let’s go over the 10 steps.

 

 


5 Comments

  • Kendall Bunn

    Reply Reply May 14, 2010

    what is an average loan application approval rate?

    • Kendall Bunn asked:
      What is an average loan application approval rate?


      203k Mortgage Lender’s Answer:

      Hi Kendall

      203k loan applications have the same approval rate as regular FHA and Conventional loans. If a Borrower can get approved for let’s say $400,000 on a regular loan then the only difference from a 203K would be that the same $400.000 must also include the purchase price and improvements. As far as property approval, 203k loans have a higher approval rate than regular loans as the condition of the property is not a factor.

  • Bobby L. Cole

    Reply Reply April 14, 2010

    Been reading for a few days now. This was very good and solid information. BTW, I like your site design as well. I enjoyed reading it and hopefully you will write more soon. Do you have a newsletter? How do I subscribe to the blog itself?

    • Hi Bobby,
      Thanks for the compliment. To subscribe to this blog you can click on the email icon or orange RSS icon on the top of this page. If you subscribe by email you will be notified via your email when there is a new post. If you subscribe via the Orange RSS button you can use a free web based reader such as Google Reader to view new posts.

      Take Care

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