FHA 203k Streamline loan, FHA 203k Standard loan, Fannie Homestyle
By Charles H. Gaulden
(Duval Realty of Jax)
On FHA 203k or Fannie HomePath Renovation loans, what happens to the money for repairs after closing?Depending on the version of the loan there are different scenarios. FHA 203k Streamline loan – 50% of the repair money is paid at closing with a 2-party check to the contractor and homeowner. The remaining funds are held in escrow by our concierge draw team. When the work is completed, there is a final inspection to ensure the job was completed in workmanlike manner AND there is a final title update to ensure there are NO liens from the contractor before issuing the final 50% check. FHA 203k Standard loan – There are NO upfront monies. After closing, the funds are held by our concierge draw team. The contractor can have up to 5 draws on the repair funds. There is an inspection for each...
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