The 203k loan process is designed to be simple and straightforward. Once you've identified a property in need of repairs, the process begins with obtaining quotes from licensed contractors for the work needed. After the quotes are gathered, your lender will review them to ensure they meet FHA guidelines.
Once your loan is approved, the funds for both the purchase (or refinance) of the home and the renovation costs are placed into an escrow account. From there, the renovation process can begin. Throughout the renovation period, your lender will disburse funds to the contractor as work is completed.
After all the work is finished, a final inspection is conducted to ensure everything has been completed according to plan.
With a 203k loan, you can turn a fixer-upper into your dream home, all with one convenient loan.
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