203K--FHA Renovation Loan Programs FOR BUYERS!

Since over 40% of today's loans are FHA--the 203K Renovation Loans really do work in today's real estate market!

What is the FHA 203K Renovation Loan Program--it's financing with all the fixings. You acquire the loan to buy the property and money to repair the property, as well--all in a single mortgage transaction. Loan amounts are based on improved property values and buyers can make improvements right after closing. All work must begin within 30 days of the loan closing and must be completed within the first 6 months. Renovation costs are spread throughout the mortgage term. These loans are available for single family homes with a purchase price up to $423,750 (includes renovations). A home buyer can borrow from $5,000 to $35,000 for renovations.

With so many foreclosures and short sales on the market--and many of these in need of appliances, new roofs, etc., this may be the best loan to get needed improvements done!

Here's what a buyer will need to do:

• Consult with a mortgage person to determine if the renovation program will meet their needs.
• Apply for a Purchase and Renovate Loan--providing credit documentation as requested. Review loan process and sign application documents. Review the contractor's package and copy of renovation disclosures.
• Upon credit approval, you will receive a pre-approval letter and a renovation specialist will contact you to discuss approval conditions and the process.
• Once you choose a property and execute purchase agreement, inspections will be scheduled by your realtor. Your home mortgage person will assign a HUD-certified consultant to you to determine the scope of work involved with the property.
• YOU select the contractor and provide a contractor's packet. Upon completion, the contractor returns the packet to the mortgage lender.
• The scope of the work is reviewed and accepted by all parties--you, your consultant, your contractor and your lender.
• The approved scope of the work is sent to an appraiser who inspects the property and determines its after-improved value.
• Final loan approval is issued after the scope of the work, appraisal and loan commitment conditions are reviewed and approved.
• You obtain the homeowner's insurance, the title is received, final figures are established and the closed documents are signed.
• Renovations must begin within 30 days of closing, cannot stop for more than 30 days and must be completed within the agreed-upon time frame--not longer than 6 months.
• As work is completed, inspections are made by HUD-certified consultant, funds are requested and disbursed.

And now, you can enjoy your newly-renovated home!