Contact a Rehab Lender and get pre-qualified. We can assist you in finding a lender in your area that we've worked with to ensure that you'll get the best service.
Hire a real estate professional to assist in finding a suitable property. If possible, choose one that understands the rehab home buying process. Do not worry if the agent you are already working with is NOT that familiar with rehab loans- your NAFHAC Member Consultant will guide both you and your agent every step of the way.
(If you are refinancing an existing loan with a rehab mortgage, a real estate professional is usually not needed).
Set an appointment with your NAFHAC 203k/Rehab Consultants. Always look for a consultant who has the NAFHAC Certified Seal. This means you are working with a well trained, experienced and excited rehab consultant.
When you contact them, your NAFHAC Consultant will gather necessary information (and possible request additional forms and studies) They will meet you at the property and evaluate all areas of the home. They will ask you a lot of questions about what your plans are for renovating the house and turning it into your “DREAM HOME”. After that meeting your NAFHAC Rehab Consultant will create a "Job Specification & Bid Request". This is a detailed list of the Mandatory (if a 203k loan), Recommend and Desired repair items to be completed. This list will include estimates for the cost of all the work so you have a clear idea of the amount to be added to the purchase price of the home. Your NAFHAC Rehab Consultant will forward copies of the various reports to your lender (and real estate agent if applicable) to assist you in the loan process.
Get contractor bids by using the "Job Specification & Bid Request" prepared by your NAFHAC Rehab consultant. You may be able to get introductions to qualified contractors from them as well. This is a wise move even if you already believe you have your contractor-it never hurts to get a competitive bid.
Choose a contractor. As your consultant I can assist you in the process and verify contractor compliance to the specifications. The lender will hire an appraiser and once the appraisal report is done, in most cases, your lender can close the loan.
Schedule the contractor to begin the work. Once the work begins, the contractor will need to schedule inspections at least every 30 days. These inspections are called "Draw Requests" and are required for the contractor to get progress payments for the work as it is completed. Your NAFHAC Consultant will inspect the property -with you present (preferably EACH time) and prepare these documents and repeat the procedure until the project is complete.
Sample Feasibility Study Report
Sample Complete Work Write Up Package
Sample Draw Request Form
Special Information and Easy Fill Request Forms
*Although the 203K Limited (formally known as Streamlined K) program does not require a Consultant by FHA Standards, if the work to be done is valued over $15,000 and under $35,000, it would be recommended that you use a NAFHAC Consultant to prepare the "Job Specification & Bid Request" and to act as a "Plan Reviewer" to verify compliance with the FHA guidelines. Your NAFHAC consultant can also provide you with the added peace of mind perform by performing a "Final Draw Inspection" before the contractor receives the last payment.