THE RENOVATION PROCESS
  • Borrower has applied for a 203K renovation loan.
  • Borrower is put in contact with a 203K renovation consultant for the initial inspection detailing the scope of the project.
  • The 203K consultant's report is completed and then emailed and reviewed by borrower and lender.
  • Borrower whites out all calculation totals to obtain estimates from contractors.
  • When all estimates are obtained information is then forwarded to consultant for review and a possible rewrite may occur.
  • Borrower contacts lender for contractor/borrower Agreement Contract.
  • Borrower closes on loan with lender.
  • Work must begin within 30 days after closing.
COMMON 203K RENOVATION ISSUES
  • No “up front” money in renovation program.
  • Entire project funded and held in escrow.
  • All permits must be in place for typical release items such as electric, plumbing, heat and any structural changes.