FHA 203K transaction from offer to closing-10 Steps every Home Buyer & Agent should know
FHA 203k Loan - Making a Purchase Offer With a 203k Home Loan
Buyers have a tremendous opportunity to purchase and to maximize their purchase power with FHA 203K loans.
Divided into two categories...Streamline, $ 35000 or less needed for upgrades and/or repairs or Full Blown for over $ 35000 and any structural repairs that might be needed.
The beauty of these loans repairs can be done after the close of escrow. There are safeguards and you must use a FHA Certified Inspector as well as a FHA certified Appraiser. The guidelines are fairly clear.
The purpose is to allow buyers into homes that are affordable but need work that otherwise they would not have the cash to do. The home is reassessed based on the required FHA updates, upgrades or repairs and the appraised value that would result due to those upgrades etc would be the basis for the loan amount for the buyer so the costs can be built into their loan.
As with any loan, buyer(s) must be approved and qualified ahead of time.
It does take a minimum of 45 days for escrow to close due to the process.
ALL contractors must be licensed, bonded and insured(workers comp) and contractor(s) must fill out specific paper work specific to such and there must be written bids for each project to be completed. Buyers are allowed to add carpeting, painting etc.If you live in the Bay Area, specifically the greater Walnut Creek area and surrounding you can contact me for information as to whom to contact for this specific loan. I am more than happy to represent you as a Buyers Agent in this process.
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