203k Inspections & Consulting

203k Inspections & Consulting

What is a 203(k) Loan?

The 203(k) loan allows the borrower to buy or refinance a property and finance the cost of rehabilitation all with one loan. This allows the borrower to purchase a home that needs minor or major repairs with the convenience of only having one mortgage payment once the project is complete.

What are some advantages of a 203k Loan?

  • Up-front Mortgage insurance premium (MIP) can be financed 
  • Most closing costs can be financed
  • You can finance up to 6 months mortgage payments (during construction)
  • Gain 10% on the appraised value for qualifying

What Improvements Can Be Made With a 203(k)?

  • Structural Repairs & Alterations
  • Change the homes functionality and/or aesthetic appeal
  • Improvements for energy conservation
  • Handicapped improvements for easier accessibility
house

How does a 203(k) work?

  1. Find a 203(k) lender and get pre-approved.
  2. Find a Realtor that is familiar with the 203(k) process to find a home that fits your needs.
  3. CALL US at 715-210-3217 to set up a 203(k) consultation.
  4. After our consultation we will create a "Job Specification & Bid Request" (Some lenders refer to it as the SOR). This is a list of repair items that we intend to complete on your project. This "Job Specification" is what will allow all contractors who bid this project to bid on the same list. 
  5. After the "Job Specification & Bid Request" is created a copy will be given to the lender and to the buyer or owner who is refinancing the property.
  6. When bids come back the borrower can choose the contractor they would like to use. We are available through this process to help the borrower & offer suggestions as to which bid is the most appropriate for this project. (The lowest bid is not always the best bid!).
  7. Once the loan has closed the contractor is notified so they can schedule the work to begin. Once work begins the contractor will require continuing inspections to get payments for progress from the completed work. The contractor or homeowner can initiate this draw request. 
  8. Draw requests (Inspections for completed work) will repeat itself until the project is complete.
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