The FHA 203k Doesn't Have to Take Months and Months
Depending on the deal, there's talk of FHA 203k loans taking 6 months to close. Add to that up to 6 months to have the home improvements completed, and you're looking at a year of dealing with this mortgage program before you can have the home you want. That sounds like a nightmare. But it doesn't have to be this way. In fact, the 203k should take about as much time to close as a normal mortgage, with a few exceptions.
Time is one of the top complaints about the 203k. Yes, some deals take time. However, many delays are due to borrowers and their schedules. Much of the responsibility is on you to get the correct paperwork to your mortgage consultant, get the bids on the projects and have things done in a timely manner. Other problems arise when a lender is not an FHA 203k expert. These lenders aren't sure how to handle FHA guidelines, or they're weak in the construction area of the process. Whatever the issue, it's important to find a mortgage consultant and lender who understands the FHA 203k inside and out.
Because this option takes care of home improvements, it does come with more regulations and paperwork. The cautionary tale here is: be patient and be prepared. While a lender may be able to close a mortgage in a few weeks or a month, the 203k might take an extra couple weeks. But it shouldn't take months and months. And the mortgage consultant ought to be able to tell you pretty quickly if the loan can be done at all.
If you're a current homeowner, the 203k might be an option for you to refinance and remodel. You could have a new kitchen, add a bathroom, replace old windows or carpet and more. In this scenario, you would have to come up with the 3.5% down payment still, but it's a viable option in the current housing market of little-to-no equity.
Learn more about this home improvement loan option with "The FHA 203k Survival Guide" at the button below. This free eBook walks you through the 203k process start to finish, and helps you decide questions like 203k Streamline vs Full 203k. Get your copy today and get ready to finance those home improvements you want!
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