Contractors get more upfront money for their 203k projects
By Mike Young, FHA 203k Consultant 916-758-1809
(203kOnLine.com, covering the USA)
Contractors get more upfront money for their 203k projectsStreamline k loans now and hereafter referred to as "Limited 203k" loans always provided 50% of the materials cost up front to the contractor unless you were dealing with a lender like Wells Fargo that only allowed 35% or Prospect Mortgage at 40%. Most other lenders provided the full 50% per the guideline. The new rule as it is proposed forStandard 203(k) transactions, Mortgagees may disburse the following at closing: permit fees (the permit must be obtained before work commences); prepaid architectural or engineering fees; prepaid Consultant fees; [reimbursed to the borrower] materials costs for items, prepaid by the Borrower in cash or by the contractor, where a contract is established with the supplier and an order is placed ...