Contractor Directory for FHA 203(k) loans
TO GET STARTED
Use the map below to zoom to the area (double-click map to zoom & click/drag map to move it) where the property is located and follow the links to the experienced / knowledgeable 203k Contractors for that area. You can also Manually Search for a 203k Contractor in the area where the property is located.
If you are unable to locate a 203k Contractor by using the map or manual search, please Contact Us immediately, because we usually have a list of contractors who are in the process of getting approved that can help you.
Use this directory to locate the 203k contractors in your area. Contractors listed on this site are capable of handling your FHA 203(k) Loan needs, because they are experienced/knowledgeable with the 203k loan program and know the guidelines, necessary steps and recommended process required for your FHA 203(k) loan. To learn more about the FHA 203(k) loan program, read the article below, go to the FAQ page or for more detailed assistance, you may Contact Us.
The 203k contractors listed in this contractor directory for the FHA 203(k) loan program serve the following areas: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia (DC), Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Virgin Island, Washington, Washington DC, West Virginia, Wisconsin, Wyoming.
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Here is a published article that we wrote about the FHA 203(k) loan program.
PURCHASE AND REHAB YOUR HOME WITH AN FHA 203(k) LOAN
Most homebuyers are turned off at the sight or even the thought of a buying a fixer-upper. However, educated and informed homebuyers are utilizing the FHA 203(k) loan to buy their new home and rehab it with no additional out-of-pocket expense.
The FHA 203(k) loan is a tool that successful contractors, real estate and mortgage professionals have been using for many, many years. An FHA 203(k) loan is very similar to the traditional FHA loan (known as the FHA 203(b) loan). The only real difference is that with the FHA 203(k) loan, the homebuyer is adding money to their mortgage balance to finance any rehab/repair/improvement costs. Whereas the traditional FHA loan requires that certain repairs be done beforethe home is purchased, the FHA 203(k) loan allows the homebuyer to purchase their home and complete the repairs/improvements after the transaction closes. The other traditional FHA qualifications (credit check, appraisal guidelines, seasoning rules, etc.) still apply. But with the FHA 203(k) loan, a homebuyer can fix up his/her home and not have to worry about the additional out-of-pocket expenses for the repairs/improvements. What a brilliant way to purchase a home in today’s real estate market!
There are two types of FHA 203(k) loans: the Standard (also known as the Full 203(k) or Rehab 203(k)) and the Streamline. The FHA 203(k) Rehab allows for structural modifications, additions, landscaping, architect and engineer contracting and requires, among others, a 203(k) Consultant. For the Rehab version, contractors are paid through a series of draws requested from the homeowner’s lender after each phase of work is inspected. The FHA 203(k) Streamline is simpler but will not allow for structural modifications, landscaping, etc., and has a maximum repair limit of $35,000. Contractors are paid in two payments – the first payment will be for materials/supplies, up to 50% of the cost of the job and the final payment is made to all contractors when all the work is 100% complete.
The FHA 203(k) loan is a great option for many reasons (just to name a few):
- Less competition to buy a home because fewer homebuyers want to purchase fixer-uppers
- Better opportunities for great financial deals on a home because of less interest from other buyers with fixer-uppers
- Ability to fix up or add personal improvements to make a house into a home with no additional out-of-pocket expense
The FHA 203(k) loan also has potential drawbacks:
- No investor purchases; only owner occupant purchasers and qualified nonprofit groups allowed
- In a competing offer situation, it can be one of the weaker offers
- Additional contract contingency that may be undesirable to sellers
- Extra time involved with extended escrow periods, getting contractor bids, submitting additional paperwork to the lender, etc.
- Foreclosure property Asset Managers (sellers of REO’s) may not be familiar with the FHA 203k loan
- Potential challenge with finding qualified and experienced loan officers, real estate agents and contractors for the FHA 203(k) loan
The FHA 203(k) loan program improves the real estate market because it requires a property to actually be improved….not just purchased. Because of the improvement requirement with the FHA 203(k) loan program, real estate values are increased, which helps other homeowners in the same neighborhood, invigorates communities, creates work for contractors and commerce is conducted by the purchasing of goods and services. Simply put, the FHA 203(k) loan program improves everything associated with it.
With the US Treasury stating that more foreclosures are coming to the market and Fannie Mae and Freddie Mac also stating that they have ~100,000 unlisted properties in their inventory, fixer-uppers could be prevalent in our coming market. Therefore, the FHA 203(k) loan is an excellent and viable option and will continue to be for quite a while for purchasing fixer-uppers because it allows homebuyers to finance the rehab/repair/improvement expense into their mortgage.