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203K Cheat Sheet Revised

This document provides information about FHA 203K streamline loans for financing home purchases that require repairs. It lists the basic requirements, such as a 3.5% down payment and 640 minimum credit score. It outlines the types of eligible repairs, steps in the 203K process, contractor requirements, and important reminders. Borrowers must qualify for the purchase price and estimated repair costs, and contractors must be licensed, insured and understand the payment process.

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lyndamck
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306 views1 page

203K Cheat Sheet Revised

This document provides information about FHA 203K streamline loans for financing home purchases that require repairs. It lists the basic requirements, such as a 3.5% down payment and 640 minimum credit score. It outlines the types of eligible repairs, steps in the 203K process, contractor requirements, and important reminders. Borrowers must qualify for the purchase price and estimated repair costs, and contractors must be licensed, insured and understand the payment process.

Uploaded by

lyndamck
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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203K Streamline Cheat Sheet

The Basics
3.5% Down Payment Down Payment Gifts Allowed 640 Fico Score 1-4 Unit Properties 6% Seller Credits for Closing Costs 30 Year Fixed Rates $30,000 max repairs required 10% Reserve Budget added to quote Re-inspection fee included in loan Title update included in loan Up to 3 Licensed Contractors Allowed 6 Months to complete work

Types of Repairs
Roof/Gutters/Downspouts Flooring & Carpeting Mechanicals Interior & Exterior Painting Bathroom/Kitchen Renovation Plumbing & Electrical Appliances Windows (Weatherproofing) Exterior porch, deck & patios Basement finishing/remodeling Basement waterproofing Septic/Well replacement/repair Lead Abatement

Contractor Information

Steps in 203K Process


Show Home/Make list of Repairs Have Buyer contact Loan Officer Recommend licensed contractors Have Contractor write up quotes Provide Loan Officer with Quotes Make offer & Sign P & S if Accepted P & S must be Subject to 203K loan Normal Loan process to Closing After loan sold, 30% dispersed Job completed, inspected, funds paid

Licensed/Insured Required
Up to 3 Specialty Contractors/home References must be provided 5 Forms executed by Contractor Itemized quote on letterhead with fee Quote signed by buyer/contractor 30% funds given at initial deposit Balance paid upon final inspection 6 months to complete job

Important Reminders
Borrowers must qualify for purchase price & repairs (Look at homes under budget) House must appraise as-is and after improvements made to cover repair costs Contractors must be licensed, insured, reliable & understand when/how their paid Remember, No structural repairs are allowed (moving walls, etc)

Lynda Mckenzie 401-524-9796 NMLS#137627/RI license#137627

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