Have No Fear Remodel FHA 203K IS HERE!!!
Buying an estate sale home?
Want to redo a home or do a kitchen remodel?
Need all new appliances without laying out the cash first?
See these facts below and then
See who has designed this streamlined 203K process and has closed over 250 203K properties in the last 2 years!
FACTS ON FHA 203K-STREAMLINED VERSION
Facts on 203 K can use for sale or refinance on an owner occupied single family residence
This is for counties of will cook Kane and du page
Max amount of funds allowed is 35,000
Limited is 35000 was once called streamline
Max purchase price is 365700 which would include the 203k funds on top of it
When writing the contract only put in the purchase price and then
On contract where it says type of financing pick other and put in FHA 203K
When goes to lender you will be given a list of approved general contractors
The general contractor is the key as the general will assess all the jobs needed for this property. He will meet the buyers out there and they can discuss the items to be attended to
There is the preliminary bid, that is the conversation that could go something like this: " Ok you need hardwood floors and new cabinets, some of the windows, (that could be about 20,000) and new appliances.”
Also Covers windows roof, minor renovation and even mold removal
Some buyers may only need all appliances only. That can also be on an FHA 203K bid
The General Contractor does all the work on your behalf:
-Takes bids from sub-contractors
-Finalized all the pricing so as to stay within budget
-He will hire out the subs
-He will pay the contractors upon completion of their work.
Having this procedure with a General Contractor is the KEY to closing within a 45-50 day window!
When Buyers lender sends out Mr. Appraiser, he will do 2 appraisals: one for Pre 203k or current value and one for the future value post 203k loan.
Buyers final loan will reflect the added funds from the 203K
Your mortgage payment will now be reflective of your loan amount plus the FHA funds!
FHA 203K-FULL BLOWN VERSION
Used for multi-family residences
The limits for this version are:
-1 unit is 365700.
- 2 units 468150
-3 units 565900
- 4 units 703250
This is used in an owner occupied multi family building up to 4 flat building
Can also do a streamlined 203k with a multi family building also
The important note here is: the appraisal must equal the end value just like the residential streamlined version.
Two appraisals will be done:
One for the current value (Pre 203k price);
And one for the end value
****Rehabbers can do this as long as they are going to live there.
Min FHA standards
Streamlined FHA 203k has 60 days to complete after closing.
Full blown multi family FHA 203K has 90 days to finish after closing.
As long as one original wall remains, contractors can do whatever they wish.
The bids: also Pays for permits and subs
The Federal Savings Bank
For more information about the lender who streamlined this entire process, call Laura Alberts, Orland Park, Illinois Realtor, at 708-220-7623.