how to proceed

nancymccurdy · Joined: 12 Mar 2008 Posts: 1 1.32 Dollars($)

I am looking at a house in foreclosure and will need renovations since it has been sitting for some time...the process to apply for a 203K loan is what? Should I see if I qualify first - do they need to look at the house? what are the steps...Lastly, how long will this all take ?

adonis · Posted: Wed Mar 12, 2008 10:22 pm Post subject:

Welcome nancy,

Good to know that you're into buying a home. Well, 203k is a good option no doubt if you are looking to purchase and rehab.

I think you should first check if you qualify. The lenders would surely look into the house and ask what repairs you need to make because there are certian repair work which cannot be done using this loan.

To know more on 203k loan, please refer to the follwing pages:

http://www.mortgagefit.com/texas/rehabloan-refinancing-1.html .

sara

Hi Nancymccurdy,

Currently the FHA has increased it's loan limit, so hopefully you will be able to get the 203k loan worth the cash amount you require. So, first of all, check out if the limit available in your county fits into the cash amount you require. Then talk to some FHA approved lenders and see if they are comfortable offering you the loan amount you require. If yes, then they shall provide you with a pre-qualification letter.

Next, you need to apply for the 203k loan and wait till the loan is approved by underwiters. Then is the closing wherein you sign all important papers and within 3 days you receive the loan funds.

I have explained the process in short. To get a detail account of the mortgage process, please refer to the "Loan Process" section in the Mortgage guide prepared by the community.

I shall suggest that you go for no-obligation free counseling with some of the lenders in this community so that you can come across a wide range of options other than 203k or may even get better rates with the lenders here.

Take Care

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