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203k Loan Consultant
Kansas City

 

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Details

What is a Kansas City FHA-203(k) Loan?

What Is The Purpose Of FHA 203k Loans?

The 203(k) is a unique loan that lets  buyers or existing homeowners take that fixer-upper OR older outdated home and turn it into their “DREAM  HOME”  by financing OR re-financing that 1-to-4 family dwelling with one loan that includes both the purchase cost AND the repair or renovation costs in one loan AND allows them to do the renovation, repairs, or other improvements AFTER  they close.

The 203(k) loan is an FHA insured mortgage used for the purchase or refinancing of a 1-4 unit residential property in need of a minimum of $5,000 in repairs or improvements All in one closing.  The loan is fully funded, disbursed at closing and can be insured BEFORE the construction or renovation is completed

After the loan is closed, the funds required for construction are deposited into a construction escrow account, and are disbursed as the construction progresses.

For most conventional mortgage loans, homebuyers buying properties in need of major repair OR even minor would have to pay for those repairs, renovation or upgrades out-of-pocket UPFRONT  AND if any of those improvements were a condition of  the financing because of  requirements in an appraisal or a home inspection, such as:  too many roofs, an old 60 amp fuse box, termite damage or a fire damaged property, THEN those repairs would have to be made PRIOR to the loan closing.

 

Think about all the foreclosures and short sales or run down properties that are listed on the market at a discount to cash buyers OR non-profits due to the amount of rehab or renovation work necessary just to make the properties move-in ready.

 

The FHA 203(k) Loan fills that gap and helps a buyer who will be the primary resident, (not an investor landlord), upgrade and improve that property and maintain the integrity of the values in the neighborhood.

If you’re searching for a home to buy and you can’t find just the right home within your budget in the right neighborhood that has the carpet, tile, kitchen cabinets, granite counter tops and paint that you want, then the FHA 203(k) Loan is the perfect solution you need.

If you already own a home that’s  older, worn, or if major systems like the roof, electric system, heating or air conditioning need expensive replacement  OR  you want to remodel your kitchen, bath, add a room ….. the FHA 203(k) is for you.

That’s why the FHA 203(k) loan is often referred to as “FHA’s Dream Loan”. 

FHA 203(k) Consulting

Are You Getting A 203(k) Renovation Loan And Looking For A  Certified 203(k) Consultant?

Look no further! We are nationally approved HUD/FHA 203(k) consultants and work harder to protect your interests than any other consultant in Kansas or Missouri.

From large to small renovations we are here to assist you in every step of the 203(k) loan process. From determining whether a property will meet your needs and HUD’s, to providing cost estimates, site visits and the proper forms our consultants can do it all.

Why Do You Need A FHA Consultant For 203(k) Renovation Loans?

Simply put, to protect you and the property you are investing in and to ensure renovations are properly completed. The job of a 203(k) Consultant is many. 

What does a 203(k) Loan Consultant do?

I. Site Visit

  • Our consultant meets with you the borrower at the property
  • A general Feasibility Review of the work to be done and ANY rehab or improvements needed for HUD determines if a project is feasible

II. Detailed Report Contain:

  • Clear project specifications
  • Construction cost estimates or analysis
  • Preparation of lender paperwork
  • HUD required draw request forms
  • Preparation of contractor bid packages

III. Consultant Delivers the Package For Use By:

  • The lender
  • The borrower
  • The contractor

IV. Selection Of A Contractor By The Borrower:

  • The borrower selects a contractor. Please note that some lenders may have Preferred Contractors they want you to use. Some lenders maintain a list of contractors that meet the lenders qualification criteria. If you’re considering a contactor which has not yet been approved by your lender or has never done a 203(k) renovation, it is important that they are informed early on about the 203(k) requirements and guidelines as it applies to contractors

V. Loan Closes

  • The property is bought
  • Repair funds are placed in escrow
  • Rehab or Remodeling begins

VI. Consultant Performs Draw Request Site visits

  • 1st Draw - Consultant insures permits were issued for work, and Consultant insures Draw Request work has been performed properly and determines the % to be released from Repair Funds
  • 2nd Draw & 3rd Draw - Consultant insures Draw Request work has been performed properly and determines the % to be released from Repair Funds
  • 4th Draw - Consultant insures Draw Request work has been performed properly and determines the % to be released from Repair Funds. A punch final list is established
  • 5th Draw - The project is closed out and warranties and liens are collected

FHA 203(k) Consulting

With over 20 years experience doing 203(k) projects and 40 years building and construction experience, Dan is Kansas City’s leading 203(k ) Consultant and Inspector.

Request Feasibility Analysis, Inspection OR Consultation...

Cities I Service in Missouri & Kansas for FHA-203(k) Loans

MISSOURI - Bates City, Belton, Blue Springs, Buckner, Drexel, Excelsior Springs, Freeman, Garden City, Gladstone, Grain Valley, Grandview, Greenwood, Harrisonville, Higginsville, Holden, Holt, Independence, Kansas City, Kearney, Lathrop, Lawson, Lee’s Summit, Lexington, Liberty, Lone Jack, North Kansas City, Oak Grove, Odessa, Parkville, Platte City, Pleasant Hill, Raymore, and Raytown, Richmond, Riverside, Smithville, Warrensburg, Weston.

KANSAS – Atchison, Baldwin City, Basehor, Bonner Springs, Bucyrus, Desoto, Edgerton, Edwardsville, Eudora, Fairway, Gardner, Kansas City, Lansing, Lawrence, Leavenworth, Leawood, Lenexa, Louisburg, Merriam, Mission, Mission Hills, Olathe, Osawatomie, Ottawa, Overland Park, Paola, Prairie Village, Roeland Park, Shawnee, Shawnee Mission, Springhill, Stilwell, Tonganoxie, Wellsville and Westwood

I will also do FHA-203(k) or Fannie Mae HomeStyle projects further out, BUT pricing is dependent upon the travel time, distance and extent of the Rehab or Repairs and the scope of the project / analysis.