Loans By Kathy: FHA 203(k) Financing – Required Paperwork

FHA 203(k) Financing – Required Paperwork

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:

FHA 203(k) Financing - Eligible Properties

FHA 203(k) Financing - General Guidelines

FHA 203(k) Financing - Eligible Improvements

FHA 203(k) Financing - Ineligible Improvements

For more information about the FHA 203(k) rehabilitation loan program please feel free to give me a call.


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Kathy Sheehan Senior Loan Officer






Bay Equity LLC

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11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

800.BAY.3703 Bay Equity LLC NMLS ID#76988



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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.


Comment balloon 3 commentsKathy Sheehan • February 27 2012 06:54AM


Thank you for the series of posts. I will bookmark this and share it with buyers.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) over 6 years ago

Thank you Gita, that is a lovely compliment.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) over 6 years ago

If you know Gita, she will probably refer clients back to you, Kathy.  And, this is a great series.  Thanks. 

Posted by Suzanne McLaughlin, Sabinske & Associates, Realtor (Sabinske & Associates, Inc. (Albertville, St. Michael)) over 6 years ago