Benefits of the 203k Program
The Loan and Inspection Process
- The home buyer qualifies for a loan with a 203k lender.
- The buyer finds a house and determines if the purchase price plus the cost of repairs is less than (or equal to) the appraised value (after repairs). A 203k consultant can complete a feasibility analysis to help with this.
- The buyer executes a sales contract contingent upon meeting 203k program and lender requirements.
- The 203k consultant completes a proposal of the necessary and desired repairs so the buyer’s contractor can determine the cost.
- An appraisal is completed, the loan is processed and, assuming all lender requirements are met, the loan closes.
- Mortgage payments and renovations begin.