The FHA 203(k) loan is a rather unique mortgage because it allows homeowners to borrow more than the property is currently worth for home renovations.

However, the FHA 203(k) has quite a bit of paperwork and many professionals believe that too many borrowers get fed up before the process is over.

Boston Real Estate Now puts it this way:

“FHA loans take even more time, the underwriting seems endless, and the paperwork could kill a forest. The consensus is this advice: if you are going to apply for a 203K loan, find a lender who does them on a regular basis. Like all FHA products, the process is different and it takes some experience to know where the traps are. If you barrel in without proper guidance, you will end up stuck for weeks, waiting for the next list of paperwork the underwriter asks for.”

As with all creative financing techniques, choosing someone who has experience in the area can save you a lot of time and trouble.

See Also:

FHA Mortgage Guide

FHA 203(b) Loans

Tags | creative financing, FHA