FHA 203k Rehab Loan
This Article On FHA 203k Rehab Loan By Nick Auriemma Explains The FHA 203k Loan Program
This BLOG On FHA 203k Rehab Loan Program was written by Nick Auriemma of The Gustan Cho Team at Nationwide Mortgage and Realty LLC
- The FHA 203k Rehab Loan Program is a great mortgage loan product for buying fixer uppers and foreclosures.
- This will be the forth in a series of articles that will attempt to give an honest and transparent assessment of several critical moving parts that make up the FHA 203k Rehab Loan Program which only requires a 3.5% down payment on the after improved value for both the acquisition and construction financing.
- There are two types of FHA 203k Rehab Loan Programs:
- Streamline which has a budget of $35,000
- Full Standard FHA 203k Rehab Loan with no maximum construction loan amount as long as it covers the loan limit of FHA in the particular country and the rehab renovation project will appraise out
FHA 203k Rehab Loan Program
FHA 203k Rehab Loan Program
Ok, you’ve been through the FHA 203k Rehab Loan process:
- You have gotten an executed purchase contract, know who your contractor is
- You have completed your consultant review
- You have finished your appraisal
- You have done all your homework
- You produced the seemingly endless stream of documents
- You have closed your FHA 203k Rehab loan
- As soon as you get the keys, call your contractor and meet them at the property to go over their strategy and timelines for construction draws
Starting Construction Project
What work will be done first and an estimate of when it will be complete. Do this for the entire project. Write it down. In a nice way, you’re becoming the squeaky wheel and creating an accountability system. Contractors will always put their resources where they feel the most heat. It’s the nature of the construction business that their resources are stretched while doing
multiple projects. Some of their clients will get fast service, some will suffer. By creating an accountability system, you give yourself the edge over someone who has not been proactive with the contractor.
Supervising The FHA 203k Rehab Loan Contractor
Ask for weekly updates. A simple two minute phone call to check and see if they’re on schedule. This is an important step. If your contractor knows that you’re going to call him every Saturday at 9:30 in the morning for status, you’ve created an accountability system that will last until you move in your new home.
Contrast that to the client that didn’t meet and calls once a month only to find that the contractor has been spending all his or her time and resources at your house.
At the end of the day contractors are good solid construction professionals and do a great job, but a little accountability goes a long way. Spending a
little time now will save you a lot of time and headaches later.
About The Author Of The FHA 203k Rehab Loan: Nicholas Auriemma
Nicholas Auriemma is a licensed mortgage loan originator with Nationwide Mortgage and Realty LLC. Nick is an expert in FHA 203k Loans and is also a senior writer for Gustan Cho Associates Mortgage Information Resource Center and is connected with the top realtors in the DuPage Country area as well as throughout the state of Illinois. Nicholas is also an expert in FHA Loans, VA Loans, USDA Loans, and Conventional loans and has a national reputation for being a mortgage loan originator with no lender overlays.