What is a 203K?
For More Information Visit Our Guide
The FHA 203k loan program provides funds for the purchase and renovation of a home.
203k and how it works:
#1 Get pre-qualified for a loan
Before you look for a home it is important to be prequalified for a moretgage by 1st Signature Lending, LLC. Once you know the maximum loan amount you can buy, it's time to find a home.
#2 Work with an FSL certified 203k realtor.
Not just any realtor will do for this type of purchase. We can provide you with a list of FSL certified realtors. The agent will be able to help you find properties that need repairs.
#3 Work with an FSL certified 203k contractor.
This may be the most important of them all. Getting the wrong contractor is where things can go really wrong. So only work a licensed, bonded, insured and experienced 203k contractor. We can provide a list of FSL certified contractors.
#4 Get a home inspection.
You home inspector will conduct a property inspection and provide you with a written report that identifies FHA required repairs and any other issues that the home may have.
#5 Provide a copy of your inspection report to your contractor.
This insures that all needed repairs are included in your bid along with all of your desired improvements.
#6 Agree to a final scope of work.
Once you decided on a list of improvements and prices - your contractor then prepares a work-write up for 1st Signature Lending, LLC. The work write up is a detailed list of improvements and costs. This is what 1st Signature Lending, LLC needs before ordering your appraisal.
#7 Appraisal ordered.
Value is determined by purchase price and repairs to be completed.
#8 Close your loan.
After the loan closing , the improvent funds are placed in escrow, and renovation begins.
#9 After all work is finished.
The remaining balance due to the contractor is paid. Your mortgage terms do not change and you simply make your mortgage payments to your lender.
Call your Signature Team for details.
Phone: (317) 694-7677