FHA 203k Rehab ~ Remodel ~ Renovate ~ Refinance
How do I get started?

The are seven basic steps

• Locate the home you want and submit a contract to purchase - contingent on home inspection

• After the contract is accepted, schedule a home inspection with a 203(k) cost consultant to budget your renovation

• If you approve the budget, the 203(k) cost consultant will prepare the work write up for the appraiser and lender, and will prepare three contractor bid packages for you

• You can now bid your job to general contactors, or multiple sub-contractors

• Appraiser uses work write-up to value home as if the work is completed

• Loan closing (30 to 45 days average)

• Within 30 days of closing start project with general contractor, or multiple sub-contractors

Other things you need to know

Home Inspection:

The cost of your construction is estimated by an FHA Approved 203(k) consultant (estimator). The cost consultant assists you in determining the scope of the repairs and the costs budgeted for the renovation job.

• Perform a home inspection to create preliminary costs estimates based upon FHA Minimum Property Standards plus the scope of work as defined by the home owner/buyer

• Once project has been determined, the cost consultant prepares a 'work-write up" and 3 contractor bid packages are issued to the home owner/buyer

The Appraisal:

The appraiser will be given a copy of your "work write-up" to estimate an after improved value for your new home or current home. The Lender loans against that improved value thus giving you credit for the work to be performed