203k
Substantial Rehabilitation
Borrower Takes Preliminary
Steps and Applies for Mortgage
|
- Borrower
and realtor analyze marketability of property (feasibility study).
-
Borrower signs a sales contract for the property with a 203k
provision.
- Borrower applies for a mortgage with a lender
approved by the Federal Housing Administration (FHA) to process 203k cases.
- Borrower
has architectural exhibits prepared by an FHA-approved 203k
consultant (plan reviewer), contractor, architect, or engineer and generally
include:
| • | Plot
plan (only for a new addition) | | • | Proposed
interior plan showing structural changes | | • | Work
write-up and cost estimate |
| | Note:
For a streamline 203k, any FHA-approved lender can originate the loan and architectural
exhibits are not required. See Mortgagee Letters 2005-19 and 2005-50 for special
instructions on streamline 203k cases. |
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