The FHA 203K Mortgage Process

 The FHA 203k is a great loan for someone making a purchase or refinancing, and these steps will provide you with a road-map to understanding the process.

1)    The Buyer works with a realtor to find the right property for them, or the owner is ready for a renovation on their existing property.

2)    Get pre-approved by lender for the price range and repair estimate.

3)    Go to contract on the house noting that it is FHA 203k financing (for a purchase).

4)    A meeting is scheduled with a HUD Consultant on site of the property to complete the work write up and the estimate of repairs.

5)   The lender orders the appraisal for the property. The appraisal must contain the before and after renovation value of the home.

6)   Closing of the property takes place and escrowing the funds for repairs and upgrades.

7)   The contractor starts work on the property and draws down funds for repairs and upgrades.

8)   Lastly, you move into your new home or settle into your new and improved home.


The FHA 203k inspection, work write-up and cost estimate are essential elements in processing the FHA 203k insured loan. Therefore, when a consultant is used for the project it is the responsibility of the consultant to assure that the specification of repairs are properly prepared.

These steps will help guide you through the FHA 203k mortgage process and get you into the home of your dreams.

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