The record for a 203K loan is 10 days. Most can be done from start to finish in 30 to 45 days, the average in my area is 60 days to close.
With the 203K loan you can put just 3.5% down and include remodel and repair costs into your mortgage. Its a great way to get these vacant homes off the market.
What you need to do……………………
If your a Realtor, contact a 203K loan consultant and get them involved at the beginning. After the consultant has seen the property get an estimate on how much money you will need to make it ready for occupancy. Don’t guess! Also, don’t go out looking for fast free bids with contractors that don’t understand the 203K, I promise you this will waste time and you will end up starting all over again.
If your a buyer make sure your agent knows the basics of the 203K, if they don’t you will probably be wasting everyone’s time.
Is a 203K loan more work?
Yes, a little more but nothing an experienced 203K team can’t work through.
What you absolutely need.
Get pre approved for the loan.
Get a detailed contractor bid, or use the feasibility report from your consultant.
Get the appraised value for the home after the work is done.
Does it cost money to hire a 203K consultant?
Yes, we don’t work for free, so pick out your home and start working with an experienced 203K team, this is not a loan you will be allowed to guess at, and make sure your real estate agent understands at least the basics of the loan.