FHA 203k - Loan Sharks?

203k Draw Process - Why do we have to wait so long for our Check?


You have probably heard about the nightmare/horror stories of people working through issue after issue to get their 203k closed. I actually know someone that worked 9 months with their loan officer to move towards closing, ultimately to discover that they actually had to WAIT OVER 60 DAYS FOR THEIR FIRST DRAW CHECK!

AHHHHH!

A few INSIDER POINTERS to help you and your 203k planning:

1. Go FHA 203K Streamline, ANY chance you can - Verify that the mortgage company you are working with will advance 50% of your renovation funds UPFRONT!

2. Work with a Company with their own DRAW DEPARTMENT - You will avoid the 60 day waits for your 1st advance and keep your contractor happy.

3. IF you are using a HUD 203k Consultant - Consult for the soonest you can submit for your 1st draw (the 1st and last draw take the most time - get started on the request)

4. Advances for Materials - HUD allows for material advances on large end items (flooring, HVAC, cabintes/countertops, roofing, etc..)

The most important thing I can tell you is PLAN. Most Loan officers are only around for the commission and BELIEVE THEIR JOB IS DONE WHEN YOU SETTLE... BOLLOCKS!

Make sure you work with someone that knows the process, has experience and maybe even cares a little bit. ;)


Go out, buy houses, make equity, enjoy your life.... It's much too short.

b