HomeStyle and 203(k) Lender

THE RENOVATION ROAD MAP

Choosing Your Contractor

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Choose Your HUD Consultant

The HUD Consultant is the overseer of the project, and an ally to the homebuyer.  He or she approves the construction, monitors the contractor, and releases the draws when construction milestones have been satisfied. The HUD Consultant plays a slightly more significant role in  a 203(k) loan than a Fannie Mae HomeStyle Loan. Watch our interview with a HUD Consultant!

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Locking Up a Property

You understand the process, the financial commitment, and your team of experts is in place. It’s time to search for a home!  You'll be touring neighborhoods and properties, studying comparable sold listings, and crunching numbers to craft your offer,  Expect a few offers and counter offers before agreeing on price and terms, and locking up your property.  Videos: How to get your offer accepted, interview with realtor who's rehabbed over 150 homes

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Contractor/HUD Consultant to the Property

Your offer has been accepted!  Let’s get the contractor(s) out to the property to work up your Initial Bid.  If you're using a 203(k) loan, the HUD consultant will be involved at this point (watch video).  The bid is submitted back to the lender and reviewed. We may request modifications and/or additional paperwork from the contractor. Once satisfied, we order the appraisal (watch appraisal video).  At this point, we're working very closely together to get your loan approved. Hang in there, there's a lot of paperwork! 

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Lender Closes the Loan

Congrats, your loan has funded!  Your down payment + the lenders funds have secured the property, and the renovation funds have been allocated to an escrow account. Now it’s time to start the work. 

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Start Renovating!

It's time for your property to turn into a Home. Watch here to learn about all the possibilities! Your contractor and crew will begin demo, ordering materials, and renovations.  Once designated work is completed the HUD consultant will be called to the project to inspect the work and release the draw. Typically there are 5 draws

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Renovation Complete

Before the final draw is released, the HUD Consultant signs off on the project, and ensures a clear title by obtaining lien releases from contractor and all sub-contractors. If there are funds in the Contingency Reserve, they can be allocated towards a principal reduction, or in some cases, can be used for additional renovations.  Congratulations, you’re walking into the home of your dreams.

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Meet with Your Lender

In your initial consultation, we’ll discuss your home buying goals and the overall loan process.  We’ll learn a little bit about you, your financial position, and more specifically, what you’re comfortable with in a monthly payment, down payment, and closing costs (read about terms and costs).  We’ll get you fully pre-approved by evaluating your income, assets, and liabilities.  Ultimately, we’ll present your renovation loan options to you (watch 5 minute video for additional information on terms and programs) and help you choose the program that puts you in the best financial position.  After this consultation, you'll have a full understanding of the renovation process and the financial commitment.

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Put the Team in Place

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One of the very first and most important steps after meeting with your lender is to begin searching for your contractor.   Your contractor plays a vital role in a successful renovation (read about contractors role).  If you’re not sure how to select your contractor, you can start by asking for a referral, or searching online and reading reviews. You’re going to want to do a thorough vetting process . Contractors who are experienced with renovation financing, may be valuable because the process differs from what they may be accustomed to. Watch a video of the contractors role here!

Choose Your Real Estate Agent

Your real estate agent should be your local expert. He or she should have an intricate knowledge of the neighborhoods and property values.  Your real estate agent is a great communicator, shrewd negotiator, hard worker, and will work closely with us to structure your offer to purchase.  

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Renovation Loans 
Fannie Mae HomeStyle
FHA 203(k) Loans

WHAT PEOPLE SAY

Matt and his team were excellent to work with on my home loan. I worked with Matt from pre-approval, throughout my home search and then through the escrow process. Matt and his team were always responsive and helpful... on weekends and after hours to answer my questions and provide insight. Matt and I locked in a great rate and closed early, they also did a great job of ensuring that I used up all of my seller's closing credits.  Great team highly recommended!"

—  Michael F.

 

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