In the previous post in this series, we discussed the eligible property types, eligible repair type, ineligible repair types and some general guidelines. Once you have determined this is the best financing method there are a couple of things you should know about the required paperwork.
The FHA 203(k) financing program does require more documentation. Getting this right the first time will help expedite the process.
Here is what you will need:
· Complete borrower credit package
· FHA appraisal stating “as is” and “after improved” values on the same appraisal report's
· Contractors resume
· Contractors business license and proof of insurance
· Two prior clients reference forms signed by all previous customers
· Completed, signed and dated W9 for every contractor
· Contractors cost estimates
· Homeowner-Contractor agreement must be fully executed by borrower and contractor. (An agreement will be needed for every subcontractor)
· FHA 203K worksheet completely filled out with all fees. The fees on this form must match the HUD1 settlement statement
For more information about the FHA 203K program please check out the following links:
For more information about the FHA 203(k) rehabilitation loan program please feel free to give me a call.
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The opinions and general information in this blog are soley those of Kathy Sheehan. Specifics regarding an individual case should be discussed in detail with a loan professional. For a confidential consultation, please feel free to contact me via phone or email. All terms and conditions are subject to change.