FHA 203k Purchase and Renovation Loan

July 26, 2010 - PRLog -- FHA 203KS FORMS

"We wrote an offer on a foreclosure and the appraiser called out repairs including a new Roof. The borrowers bank wouldn't do the loan. Another agent in the office recommended Gil Kerbashian. Gil was amazing. He returned my calls quickly, explained the loan program well, pre-approved my clients the same day and we CLOSED on a home that the bank said couldn't be done." Melissa Ross, Remax Professionals

The FHA 203K (ks) home loan program helps homebuyers finance up to an additional $35,000 (includes contingency and rehab admin fees) into their mortgage to improve or upgrade the home before move-in or refinance repairs with some of the lowest rates available. Thinking about energy efficiency items? You can get an additional $8,000 for your energy efficiency improvements, bringing your total rehab dollars to $43,000 including contingency reserves. I might even be able to get you an extra $2000 if you wanted to insulate or caulk the home for additional energy efficiency.

This new home loan product helps homebuyers and homeowners quickly and easily tap into affordable mortgage money to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser during a foreclosure sale (as is so popular these days).

Don't let an old roof, mold or missing fixtures stop you from buying a home and building equity from day one.

The current market offers a lot of attractive home purchase opportunities right now considering all the tremendous bargains, but many buyers do not have the required money to fix up these homes. The FHA 203ks is the perfect loan for this purpose.

I'm here to help you obtain this loan and structure the transaction. Its not difficult and with my expertise, you'll enjoy the process of fixing up your dream home! Be detailed give yourself an extra 15 days to close and we'll get it done together.

Below you'll find all the forms that you'll need for the 203ks process. All you have to do is print and fill them out. I've done the ground work to organize them for you. Most of the forms are completed and just need you to print and fill in the blanks.

Please make sure the property is prepped for the appraiser: utilities on and property cleared of debree.

Call me if you need any assistance.

Overview about the program: http://www.203kspro.com/

Please use the following Excel Spreadsheet for contractors to submit all bids on: www.realestateloans.com/203ksbidform.xls

A checklist of items needed from the borrower for the initial loan package: www.realestateloans.com/203ksborrowerchecklist.pdf

Contractor estimate/bid checklist (must be EXACT to these specs). Place one of these checklists on top of each contractors bid package, its the easiest way to stay organized. Please don't leave anything out: www.realestateloans.com/203kschecklist.pdf

Contractor borrower agreement: www.realestateloans.com/203kscontractoragreement.pdf

Borrower lender agreement: www.realestateloans.com/203kslenderagreement.pdf

Contractor references plus a RESUME for each contractor (no less than 3 references): www.realestateloans.com/203ksreferencetemplate.doc

Contractor W-9: www.realestateloans.com/203ksw9.pdf

Initial draw request for up to 50% of initial expense towards materials only. All contractors are paid the final draw when all work is completed in total by all contractors.  

Self help agreement: www.realestateloans.com/203ksselfhelp.pdf Self help agreement needs to be completed for materials expense for work capable of being completed by the homeowner/buyer.

Real estate agents, please write up your contracts as any other- you don't need any special addendums or forms. Please let the sellers know that this is a 203ks loan and will require an additional 15-30 days to close.    

Borrowers: please submit all of the above items at one time up front. Utilize the contractor checklist to help your contractors complete the bids correctly and with detail. Any missing items will cause a delay for YOU. Work with high integrity professionals.

Thank you.