Northwest Mortgage has an in-house team that specializes in FHA 203k loans. The entire process is handled in house not brokered to a 3rd party. The 203k loan is great for a person buying a Single-Family Residence and wants to roll renovations costs into the loan they are getting to purchase the home. Call anyone on our Northwest Mortgage team if you are looking for a FHA 203k loan in Bonney Lake, Graham, Sumner, Spanaway, or Tacoma. Call us now at 253-840-5600.
FHA 203k Loan Process
The process is simple if you are working with the right mortgage company and team. The pre-qualification process is the same as any other loan. Once that is done the client can go pick out the property they want to buy. The client then meets with a HUD consultant at the property for the inspection and Work Write Up. You can find a HUD consultant here. The client then gets a contractor to bid the renovation and compare those figures with the HUD Consultant. The work write-up is then prepared by the HUD Consultant and the Appraisal is ordered and completed per the renovations being done. The paperwork is then submitted to underwriting and they review and approve the loan. The loan is then funded and funds are held and dispersed as the work is completed and inspected. Once the work is done the client has one FHA Loan and moves forward in the newly renovated home.
Allowed repairs and Renovations for a FHA 203k Loan:
- Repair foundation
- Replace roof
- Paint Interior & Exterior
- Install new flooring
- Remodel Kitchen/Bath
- Upgrade heating and cooling systems
- Repair termite or moisture damage
- Energy Efficiency Improvements
- Make home Handicap Accessible
- Landscaping and exterior repairs.
- New appliances
- And more!
Items Not Allowed for an FHA 203k Loan:
- Recreational or luxury improvements, such as pools, hot tubs, whirlpool baths
- Barbecue pits, bath houses, tennis courts, or tree surgery
- Additions or alterations to support commercial use or to equip or refurbish
- Washers and dryers.
FHA 203k Loan Streamline
This is another option that allows for minor upgrades that a client can choose. This is for nonstructural improvements like updating a kitchen or new flooring. This may work as a better solution to update a home. Whether it’s a Full FHA 203k or a Streamline call anyone on our Sawtooth Mortgage team if you are looking for a FHA 203k loan in Bonney Lake, Graham, Sumner, Spanaway, or Tacoma. Call us now at 253-840-5600.