When you do an FHA 203K Loan as either a purchase or a refinance, and have over 35K in renovations, either structural or not, you have to have a HUD Consultant, approved by FHA to monitor your rehab project, but more importantly, sign off on the initial general contractor bid, before the loan goes into underwriting. The HUD Consultants job, is to make sure the project is in line with HUD “minimum requirements” for FHA to insure your loan.

Currently, I am doing an FHA 203K purchase in Wash Park, and the buyer has currently received 3 or 4 bids for his renovation of $120,000. Needless to say, the bids were all over the map with regards to price. It is the job of the HUD Consultant to not only make sure the bids are in line with the scope of the work, according to minimum FHA requirements, but to also make sure the borrower is not getting ripped off, which in this case, he potentially was.

Bids for the renovations were extremely excessive. $13,000 was the bid for the electrical renovation and the windows were bid at $4000. Instead of standard windows, the General Contractor chose expensive Pella brand windows.

Lucky for us, the FHA Consultant on this job, who also has to be lender approved, was the General Contractor for 15 years building homes for Habitat for Humanity. He acts like “big brother” on these renovations, and will charge around $200 for the initial bid review, and around $100 each time he comes to follow up with the project before each draw request gets funded by the lender.

With the fixing and flipping crazy going on with properties, many people lose big in the process because they try to brave this on their own and projects end up going way over bid.

FHA 203K Loans are by far the safest renovation loans available. Here’s why:

1. You get low interest rates for 30 year term versus 6-9 month note for private money renovation lending.

2. Refinance in 60 days with the initial lender into conventional financing. You can also refinance out of the FHA loan if the equity is there. This will carry mortage insurance.

3. You’ll be saved time and money on the project because you’ll have “big brother” HUD consultant watching over the project and whole process.

I hope I have shed light on the role of the HUD Consultant and how he acts as a Big Brother when it comes to a FHA Rehab Loan and why that FHA Loan is the safest renovation loan available.

Brian Quigley

Contact our Colorado Loan Officer TODAY to ensure your FHA Loan gets done right.

The loan products of remortgages and secured loans belong to the group of loans called home loans that means that only homeowners are eligible.This is because that both remortgages and secured loans need security which in this instance is the asset of property.

There are remortgage and secured loan lenders who are willing to grant these loans on second or holiday homes , and of course all lenders accept the main property as suitable security.

Secured loans and remortgages are pretty much same as they can both be used for just about any purpose..

Remortgages and secured loans are both very good means of buying a car for example and using a secured loan or remortgage to purchase a car does away the need for a deposit that you need when buying from a garage.

Arranging the repayment for home improvements with secured loans or remortgages are the cheapest ways as you can repay them from a five to a twenty five year period which of course makes the home improvements affordable.

A additional fact in using remortgages or secured loans when doing home improvements is that you will have the cash to hand to get a good price for the materials and the labour you need.

Both secured loans and remortgages can be used as consolidation loans which is when credit cards, personal loans, etc. are cleared and one secured loan or the remortgage is all that is left to be paid monthly. The savings to be had by taking out consolidation loans is great.

It is obvious that secured loans and remortgages can both be used for all the same reasons..

Whatever one you opt for depends on which is better for you Asking for the opinion of mortgage or secured loan broker is recommended..

They can offer you a free no obligation quotation, and you can find such brokers in the adverts in the newspapers or on the inter net.

These expert brokers can be found on the inter net by typing in keywords like consolidation loans, debt consolidation loans secured loans, remortgages, homeowner loans, mortgage brokers,debt advice, and so on,

remortgage

If you are confronting obstacles in satisfying your urgent desires, then doorstep loans provide a quick answer to your small fiscal demands. These are advances that can be availed within a very small time in addition to a service that gives maximum benefits of offering the desired amount at the doorstep of the applicant.

The funds you are looking can simply be grabbed by applying with this loan till you get your next payday. This is the stress free and wonderful financial aid for all salaried class borrowers who often face financial crunches due to inadequate monthly income.

There is no undergoing of lengthy procedural activities wherein it is essential to confirm good credit stability of the applicant in loans for the unemployed. Thus, it does not take much time in availing these contracts as they fast retained within 24 hours.

Moreover, the applicant can do so without moving out of the house. At the same time, the applicant can also be a bad creditor. Therefore, there are a number of amenities provided through this form of fiscal assistance along with cash.

There is no loss of energy or time while taking support of such finances. Though, it is important to thoroughly revise the terms of the deal and reassure the interest rates. Usually, these contracts carry quite high charges of interest on refund.

Before carrying out any other procedures, it is important to satisfy the clauses put forth in terms of confirming the eligibility of the applicant.

Hence, the borrower should be an adult above 18 years with stable working status and an updated bank account. He must also certify his employment position so that his repayment capacity is assured.

A satisfactory outlook of fast cash personal loans can be observed through the net and a rational decision can be undertaken. Moreover, it is helpful to appeal for this loan directly through the internet where there are no fees for processing. As a result, it is worthy enough to apply for these contracts online.

Harris Smith is a writer on personal finance education. Her article tackles the pros and cons of home equity line of credit