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Oklahoma FHA 203K Renovation Loan

You Can Purchase a House in Need of Repair or Modernization

How The Loan Process Works: FHA 203k Mortgages

How The Loan Process Works: FHA 203k Mortgages

  • One of our expert mortgage lenders pre-approves you for a 203k FHA loan based on income, assets, debt and credit.
  • You select a property.
  • You meet with a consultant at the property for an inspection and feasibility study.
  • You acquire contractor bid(s) and compare figures with the consultant.
  • The consultant prepares a write-up for the work to be done.
  • An appraisal is performed “as-completed” upon having an executed contract.
  • All paperwork is completed and submitted to underwriting.
  • Underwriter approves the FHA 203k renovation loan.
  • The approved FHA 203k rehab loan is sent to the title company.
  • The FHA 203k rehab loan closes and a rehab account is created.
  • Funds are disbursed as work is completed and inspected.
  • The rehab is complete!

 

 

 

 

 

 

 

 

 

Items NOT Allowed For an FHA 203k Renovation Loan

Any luxury item and/or improvement that does not become a permanent part of the subject property is not eligible, including:

  • Recreational or luxury improvements, such as pools, hot tubs, whirlpool baths.
  • Barbecue pits, bath houses, tennis courts, satellite dishes or tree surgery.
  • Additions or alterations to support commercial use or to equip or refurbish.

 

Advantages of an FHA 203 Renovation Loan

  • FHA allows repair/renovation costs to be rolled into the loan.
  • Major items ARE allowed (such as foundation work).
  • Low down payment (3.5%) and seller can pay up to 6% towards closing costs.
  • Close before repair/rehab begins.
  • Only one closing. Money disbursed on a draw basis after closing as construction is completed.
  • Loan amount can go up to 110% of the “after-improved value” from the appraisal.
  • Buyer can include optional renovations/upgrades

 

 

 

Oklahoma Renovation FHA 203k Loan

Repair & Renovation Examples

  • Repair Foundation
  • Replace Roof
  • Paint Interior & Exterior
  • Install New Flooring
  • Remodel Kitchen/Bath
  • Upgrade to Central Heat/Air
  • Repair Termite or Moisture Damage
  • Energy Efficiency Improvements
  • Landscaping/Exterior Repairs
  • New Built-in Appliances
  • And More!