FHA 203(k)

Order 203(k) Inspection | Get A 203(k) Loan

Section 203(k) insurance enables homebuyers and homeowners to:

  • Purchase a property and repair/renovate it.
  • Purchase a dwelling on another site, move it onto a new foundation and repair/renovate it.
  • Refinance existing indebtedness and repair/renovate a property.
  • Repair/renovate a presently owned property.

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OK, now that you have a little background on the program, let’s begin to break down the process. It’s actually fairly simple.

Normally a short term loan, (AKA “construction loan”), is needed for home improvements. However, the 203(k) offers borrowers and lenders a single, long term, fixed or adjustable rate loan that covers both the purchase and rehabilitation of a property. That’s huge!

203(k) Training!

203(k) Consultant: What is a 203K Consultant and Why Do I Need One?

First and foremost the consultant is an integral part of your 5 member team. The consultant is responsible for organizing the lines of communication between the team members. And they’ll diffuse the complexity of the project by helping you with:

  • The homeowners wish list – See Video at Right >>>
  • HUD’s 35 category repair lists
  • Can guide you through rehab process and time line

Attributes to look for in a Consultant:

  • Internet “savvy” and current software availability
  • Experience in construction estimating
  • “Hands-on” field experience
  • Home Inspector background
  • Ability to write reports
  • Knowledgeable in energy and building science
  • Versed on code requirements
  • Knowledge of hazardous building materials and regulations ( ie: Lead Paint, Asbestos)

 

See an online brochure for the 203(k) Loan.

203(k)Loan VS HomeStyle Loan

Search HUD Data Base for 203K Lenders Nationwide

203(k) Consultant 
Fee Schedule
REPAIR AMOUNT
CONSULTANT FEE
$5,000-7,500
$400
$7,501-15,000
$500
$15,001-30,000
$600
$30,001-50,000
$700
$50,001-75,000
$800
$75,001 -100,000
$900
$100,000 and up
$1,000

203(k) Calculator

Purchase Price is required and should be a number

Annual taxes are required and should be a number

Annual Hazard Insurance is required and should be a number

An Interest rate is required and should be a number

A Repair Budget is required and should be a number

Inspections are required and should be a number between 2 and 5

A Repair Reserve is required and should be a number between 10 and 20

Enter the purchase price or contract price of the home.
Enter the 12 month total for property taxes.
Enter the 12 month total for property hazard insurance.
Enter the loan interest rate. Contact your 203K Pro for more help.
Will the repairs call for walls to be moved, foundation repairs or extensive wiring, plumbing or heating/cooling repairs? If so, enter YES. What are considered minor repairs? Carpet, painting and appliance replacement, etc are considered minor repairs. Contact your 203K Pro if your not sure about this option. If you answer NO, your contractor will most likely be paid a percentage of the repairs upfront, when the loan closes. Contact your 203K Pro for help.
What is the total cost of the rehab? Contact your 203K Pro for help. Enter the total repair budget in this field.
During the course of the rehab the lender will require progress inspections before the contractor is allowed to be paid. The maximum number of draws allowed is 5 and the minimum number is 2. For Streamlined K Loans, loans without structural repairs, the calculator will default to 2. Otherwise enter the total number of draw inspections needed. If in doubt, ask your 203K Consultant or Loan Officer. Hint: If you feel that the project will last 4 months, enter 4 draws, one per month.
This figure will not be less than 10 percent and will never be greater than 20 percent. The number, set by the loan underwriter, is used to calculate the total funds that are to be used as emergency funds or as a budget for job cost overruns.

Streamlined (k)

For less extensive repairs/improvements, see Streamlined 203(k). The “Streamline (K)” Limited Repair Program permits home buyers or current home owners to finance an additional $35,000 into their current or new mortgage and pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser. Find out more about the Streamlined 203(k) program by reading HUD Mortgagee Letter 2005-50, enhancements to “Streamlined (K)” Limited Repair Program or call me for more info: 601-691-1496

List of homes we have worked through the 203k Loan Program.


View 203(k) Remodeled Homes in a larger map

203(k) Sample Reports

Specification of Repairs | Draw Request | Draw Request | SummaryWork Write Up | SummaryChange Order | Change Order Summary | Consultant’s Fee Agreement | Property Information | Contractor’s Bid Package

Contact  Me to set up a feasibility study or consult TODAY!