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FHA 203K Renovation Loan Specialists!

Create your own DREAM HOME with a FHA 203K Loan!
Serving the entire State of Michigan
We are the Renovation Loan Experts! 

Your search for 203K lender has ended.

FHA 203K Rehab and Renovation Loans offer everything you could want for that home needing a little TLC. Whether it is that fantastic foreclosure deal, adding that new deck, getting rid of that shag carpet, saving the purchase deal that the bank turned down due to property condition or making that simple change that turns an ordinary home into your dream home; FHA 203K Renovation Loans can help you.

How Do FHA 203K Loans Differ from Traditional FHA Loans?
Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made. In the current market many of the numerous foreclosures sit on the market in disrepair due to vandals, theft and neglect. To lenders of traditional loans those properties are considered poor collateral that they’d prefer not to lend on. However, for FHA 203K loans the loan is based on after repair value and includes an escrow account to complete the repairs needed to bring the house to a condition that lenders prefer. That means that the current condition of the property is not as important on 203K rehab loans as the condition of the property once the 203K renovation is complete. This provides an outlet to purchase dilapidated properties, many of which have spent extended periods on the market due to the lack of availability to traditional financing, and solves the problem that most lenders face when dealing with property in disrepair. What this means to the home buyer is generally a significant discount to “as-is” value and, quite often, a fantastic deal on a house.

How Can FHA 203K Loans Be Used?
FHA 203K renovation loans are used in two different ways:

1. To purchase an existing home (and the land attached to that home) to renovate it. Does MY Purchase Qualify for FHA 203K?

 2. To payoff existing debt on a current residence and renovate it. Does MY Refi Qualify for FHA 203K?

The eligible improvements allowed on FHA 203K loans are numerous and extensive. About the only thing HUD frowns on are luxury improvements that are not going to be a permanent piece of the property. Here are just a few of the common and not so common things FHA 203K borrowers use the versatile rehab loan for:

1. New freestanding appliances
2. Bathroom remodels
3. Master bedroom remodel
4. Upgrading HVAC
5. Adding energy efficient improvements
6. Wells and septic repair and upgrades
7. New siding
8. Interior painting
9. Exterior painting
10. Waterproofing the basement
11. Creating a media room
12. Total renovations
13. Finishing the basement
14. Bedroom additions
15. Neck deck / patios
16. New hardwood flooring
17. New doors and windows
18. Upgrading plumbing and electrical
19. New granite countertops
20. New fixtures for bathtubs, sinks and kitchens
21. Making a house handicap accessible
22. Solar panels
23. Low flow toilets and shower heads
24. Creating a new master bedroom area
25. Much, much more…

What is the FHA 203K Loan Process Like?
One of the biggest misconceptions about the FHA 203K loan process is that it is hard and time consuming. It is only hard if your loan officer is inexperienced with the process. As far as being time consuming, whenever you involve third parties like architects and contractors you increase the amount of time a loan takes to close. 

However, on most renovations there is no reason the process cannot be completed in 45 days from start to closing. This is especially true on the 203K Streamline which doesn't involve HUD 203K Consultants or architects. To get a true understanding of the process you need to understand there are two different kinds of FHA 203K loans:

The easiest and quickest version is the FHA 203K Streamline. This loan is for repairs under $35,000 that do not involve any kind of structural renovations. For Streamline FHA 203K’s you will have two draws. Generally, the lender will release 35-50% upfront and 50% when the work is completed. On most of these the lender will require a final inspection to make sure the work is complete, but on some of the simpler 203K rehabs you can provide receipts showing materials have been purchased and that will be sufficient.

On the full FHA 203K, loans exceeding $35,000 or involving structural repairs, the process becomes slightly more complicated. Many times on these when you are doing more extensive repair you will need to involve an architect and get architectural drawings so the contractor bids and appraisal are accurate. You will also be required to have a HUD approved 203K consultant that will help determine repairs and administer draws. On the full FHA 203K loans the process often looks like this:

1. Contact lender for pre-approval (Click Here to Apply)
2. Locate property and make offer — offer should indicate loan is a FHA 203K and include basic FHA disclosures
3. Offer accepted
4. Contractor bids and contractor selection
5. Architectural drawings (in needed)
6. FHA 203K consultancy (if Needed)
7. Final Loan Application (Click Here for Documents Required)
8. Appraisal
9. Loan submission and underwriting
10. Underwriting conditions cleared
11. Loan closing
12. Repair begins
13. First Inspection and First Draw Payout
14. Final inspection / Title Closeout

Obviously, the process can vary from loan to loan and will often be simpler on the FHA 203K Streamline because the consultant and architect are not needed, but the basic 203K financing process remains the same.

End Result of the 203K Process
The end result of any process can rarely be guaranteed, but when done correctly a 203K purchase loan with an experienced loan officer and knowledgeable Realtor home buyers can successfully use a 203K financing to create a custom designed home with substantial equity from day one. They can use this loan, especially in this market, to solidify their future and create personal wealth. On a 203K refinance home buyers can successfully fix those little nagging problems around the house and make those upgrades they have talked about for years. They can do so all in a low fixed rate government backed mortgage. If done correctly FHA 203K loans are one of the absolute best and most useful loan products on the market. Contact Don Grimes for your all your Michigan FHA 203K Renovation Loan needs!

Click on the FHA 203K REHAB ASSISTANT and get started on your 203K financing today. We are your 203K Lender!

An important tool for community and neighborhood revitalization, the FHA 203K loan offers flexible qualifying and low downpayments:

• FHA downpayment (3.5%)
• Flexible credit qualifying (minimum credit score of 640 is required)
• Purchase or Refinance and Improve all in one loan
• The maximum loan amount in most counties in Michigan is $271,050 (Click Here to check your County Maximum loan amount).

FHA 203K Renovation program offers borrowers the resources to rehabilitate a home that may be in need of repair, either the home that they currently live in, or that special fixer-upper opportunity. One single loan is used to pay for the purchase (or refinance) and the cost of renovating the home. FHA 203K is perfect for HUD foreclosures or any home in need of repair. Complete the form below to see if a FHA 203K Loan is right for you!

Renovation Tips and Tricks

What is a FHA Loan

Fixer Upper Loan

Items needed for Your Loan Application

Ten Most Questions to Ask Your Home Inspector

Ready to Apply!

For More Information Contact:

Don Grimes – FHA 203k Mortgage Specialist
Office: (517) 324-0400
Toll Free: (800) 249-4113
Cell: (517) 927-8110
don@DonGrimes.com