203k Consultations and Inspections What is the 203k Program? The 203k Program is
the Department of Housing and Urban Development’s (HUD) primary program for rehabbing and repairing single family residences.
203k Consultations and Inspections
What is the 203k Program?
The 203k Program is the Department of Housing and Urban Development’s (HUD) primary program for rehabbing and repairing single family residences.
What makes the 203k Program different?
BEFORE the 203k Program existed: If a buyer wanted to renovate a house, the buyer would typically have to take out a loan to purchase the house “as-is”; then obtain another loan for the cost of the renovations. Finally, after all renovations and repairs were completed, the buyer would obtain a permanent, long term mortgage to pay off the previous loans. This was tedious, time consuming and cost money.
AFTER the 203k Program became available: If a buyer wants to renovate a house, the buyer can obtain one loan for both the acquisition and renovations of the residence. The loan amount is based on the projected value of the house after renovations and takes into consideration the cost of necessary repairs and desired renovations.
What are the benefits of the 203k Program?
Three of the biggest benefits are…
What does the typical 203k process look like?
In its simplest form, the 203k process is as follows:
For more information, HUD has additional webpages outlining the program’s details and more frequently asked questions:
The services of a HUD approved 203k Consultant are necessary in the majority of 203k loans. As a HUD approved 203k Consultant, we work closely with all involved parties to make certain required procedures and documentations are completed correctly and help make sure the process runs smoothly.
Whether you are a buyer, real estate agent, mortgage broker, contractor or anyone else interested in the HUD 203k Program, please contact us if you have any questions. Charles W. Wagner, has well over 20 years of experience as a 203k Consultant and is more than happy to speak with you about any questions or concerns you may have.