FHA 203(k) Renovation Tips & Tricks

1.) Selecting Your FHA 203K Realtor -- When you want to create the most equity on your FHA 203K renovation you need to carefully choose two things: your Realtor and your property. A knowledgeable Realtor with experience making offers on foreclosures is a must. If you are searching for a HUD Home then you'll need someone with knowledge of the sometimes tricky HUD bidding process.

2.) Selecting the Right Property for FHA 203K Renovation -- With the help of your Realtor you need to look for properties that need just the right amount of repair. Some people like to choose the ugliest house in the best neighborhood and some like to go for the emerging neighborhood. Regardless, work out a strategy with your Realtor and Loan Officer so you can choose wisely. Keep in mind that FHA 203K Streamline loans (those for cosmetic repair under $35,000) are going to close faster, cheaper and at a better interest rate than the Full 203K will.

3.) Choosing Your FHA 203K Contractor -- When you are choosing a contractor the first questions you need to ask concern licensing and insurance. If either is inadequate drop that contractor NOW and go find another. I don't care if the guy is your brother's best friend; if he isn't properly licensed / insured then your loan isn't going to close. PERIOD!

4.) Tips for a Successful FHA 203K Closing -- DO NOT buy anything during the process. Don't buy furniture, don't buy a car, and don’t buy a new TV... just hold off on the purchases until you close on the house. Also don't change your job and don't quit your job either. Keep your financial position the same as when you applied for your FHA 203K loan.

FHA 203K renovation loans have been around for years, but they have recently found a new use in helping people go green. So, how can you use the FHA 204(k) Renovation LOAN to go green?  Green Up Your Appliances —203K loans will finance new free standing Appliances,