FHA 203K Rehab Loan Presentation. Please call Roy hard @ 708-829-6081 with any questions.

2. Welcome to the world of Renovation loans
• What is a 203k loan?
• How can a 203k loan be used?
• Advantages of 203k loans
• The process of obtaining a 203k loan
• Why we are the experts

3. A 203k is FHA’s
Rehabilitation Mortgage loan
With this loan, a borrower can
purchase or refinance a home
and include additional money
for repairs or renovations.

4. How can a renovation loan be used?
• Purchase or refinance a property
•“Modernize” a property
• Fix a required repair
• Make optional improvements; remodel
a kitchen or build a room addition or

5. Example of Repairs:
• Replace Roof • Energy Efficient
Improvements
• Room Addition
• Paint Interior or Exterior
• Add a Garage
• Landscaping
• New Carpet
• Handicap Accessibility
• Upgrade to Central Heat/Air
• Remodel Kitchen/Bath
• Repair Termite or
Moisture Damage

6. Types or Properties:
• Single family
• 2-4 units
• Mixed use (commercial and
residential in one building)

7. Advantages:
• Perfect solution to Handyman Specials,
foreclosure properties, old listing
• Close before repairs begin … sellers love this
• Only one closing, with money disburse on a
draw basis after closing

8. More Advantages:
• Loan amount can go as high as 110%
of the “after-improved value”
• Up to six months to complete renovations
• Buyer can include optional renovations
• Can finance up to six months of payments

9. What is a Streamline 203k?
The Streamline K program is for limited repairs
requiring relatively little expertise to manage.
There is no consultant managing the project. Instead,
this program is designed for a “streamlined” project
where the home can be occupied immediately after
closing, and the contractor will receive a single
payment at completion.

10. Advantages of a Streamline 203k:
• Quicker and easier to obtain than a full 203k
• Repairs may cost up to $35,000
• Requires less documentation than a full 203k
• Can save a deal that would otherwise fall through!

11. Overview of the Process:
1. Application
2. Selection of property
3. Estimate of repairs (contractor or Consultant’s
estimate)
4. After-improved appraised value
5. Underwriting
6. Closing
7. Repairs begin and money is released on
a draw basis

12. Example of Loan Calculation:
Purchase Price $150,000
Total Rehabilitation Cost $20,000
Total Acquisition Cost $170,000
-Down payment $5,950
Maximum FHA Loan Amt. $164,050
Monthly Payment * $944
* Based on a 30-yr fixed, 203K loan program at 6.00% interest rate and an APR of 6.822% with 2 points as of 06/22/09.

13. We are the Experts
We have trained and dedicated 203k
processors and underwriters! 203K
Loans are all they do! Additionally, only
Certified Loan Officers can do 203K
loans. We fully understand the 203k
loan process, and work to make it
successful with every loan.

14. Thank you for your time today
Don’t let loan officers that aren’t 203k
experts handle your 203k loans!
Call The Expert!
Roy J. Hard, Senior Loan Officer
Certified 203K Specialist @ 708-829-6081