FHA 203k

[hglenbetts]

The buyers never see the money, as I understand.

It was explained to me that it worked like a construction loan, where the contractors submit draws based on completed work and waver of liens.

Anyone know different???

 

[Riick]

....
It was explained to me that it worked like a construction loan, where the contractors submit draws based on completed work and waver of liens.....

Inspections and Draws. No work done, no money goes out to contractor.

 

[narizona]

Inspections and Draws. No work done, no money goes out to contractor.

THERE IS A DRAW, HOWEVER AFTER READING THROUGH THE 203 K STREAMLINE, THEY WERE SUPPOSE TO HAVE BEEN DOING THE SAME AS BEFORE, NOTE SAME PROGRAMS.
FHA
[FONT=Verdana, Geneva, Arial, Helvetica, sans-serif]Many lenders have successfully used the Section 203(k) program in partnership with state and local housing agencies and nonprofit organizations to rehabilitate properties. These lenders, along with state and local government agencies, have found ways to combine Section 203(k) with other financial resources, such as HUD's HOME, HOPE, and Community Development Block Grant Programs, to assist borrowers. Several state housing finance agencies have designed programs, specifically for use with Section 203(k) and some lenders have also used the expertise of local housing agencies and nonprofit organizations to help manage the rehabilitation processing.[/FONT]
[FONT=Verdana, Geneva, Arial, Helvetica, sans-serif]The Department also believes that the Section 203(k) program is an excellent means for lenders to demonstrate their commitment to lending in lower income communities and to help meet their responsibilities under the Community Reinvestment Act (CRA). HUD is committed to increasing homeownership opportunities for families in these communities and Section 203(k) is an excellent product for use with CRA-type lending programs.[/FONT]

LIFE FINDS A WAY. HOLD ON TO YOUR BUTTS. THESE GUYS WELL FIGURE OUT HOW TO TAKE THE MONEY AND RUN.