FHA 203K Consultation in Columbus, OH
Let Professional Property Inspection help you with your 203K loan in the Columbus, Ohio area. David Tamny, AIA is a HUD approved FHA 203K consultant. His extensive experience working with both borrowers and lenders can assure that the process will move smoothly from start to finish.
What is an FHA 203K Loan
The FHA 203K loan is a great way to get money for a new purchase fix up or to improve an existing home. With so many bank owned properties in Columbus, Ohio on the market needing work, it is a means to get money to make necessary improvements. If you are considering the purchase of a foreclosed home but don't have the money to make repairs, the FHA 203K loan may be an option for you to consider. There are two basic types of 203K loans, the FHA 203K Standard or full K and the FHA 203K Streamline. The Standard loan is for major rehabilitation where costs exceed $35,000 and an "FHA 203K Consultant" is required. The Streamline is for lesser repairs under $35,000. If there have been issues with the plumbing or structural repairs are required, the Standard loan is required. With the Standard loan a single general contractor is preferred.
What are eligible improvements?
Painting, room additions, decks, carpet, appliances, doors, windows, HVAC, roofing, energy improvements and decks are common improvements. Luxury items such as swimming pools are not eligible improvements. The consultant must insure that all health and safety items and required energy conservation items are addressed in the scope of work.
What is the role of the FHA 203K Consultant?
The FHA 203K Consultant prepares the required architectural exhibits. Typically this includes a work write up which describes the intended improvements and costs for the property. The consultant typically meets at the house with the borrower and the contractor to make sure that the intended improvements are in order and that the house will meet HUD minimum property standards. The consultant must be approved by HUD and listed on the FHA 203K Consultant Roster.
What is the FHA 203K Consultant's fee ?
The Consultant must enter into a written agreement with the borrower that completely explains the services which will be performed and the fee charged. The Consultant's fee can be included in the mortgage. HUD lists the following fee schedule.
| Amount of Repairs | Consultant Fee |
|---|---|
| Less than $7500 | $400 |
| $7501-$15,000 | $500 |
| $15,001-$30,000 | $600 |
| $30,001-$50,000 | $700 |
| $50,001-$75,000 | $800 |
| $75,001-$100,000 | $900 |
| Over $100,000 | $1,000 |
How Does The FHA Loan Work?
What happens after I close on my Property?
After closing work begins and an escrow account is established with the money intended for repairs. The general contractor is typically paid in a series of draws. Up to five draws are allowed. When the general contractor is ready for a draw inspection the Consultant is contacted and inspects the work completed. A draw request form along with photos are submitted to the processor for payment. A final draw inspection is scheduled when the work has been completed. The homeowner has up to six months to complete the work. Any unused funds will be used to pay down the mortgage principal.
Can the homeowner do their own work ?
If the homeowner would like to do their own work they are not prohibited from doing so by HUD. The homeowner must be qualified to do the work and complete it in a workmanlike manner. A homeowner doing their own work can only be paid for the cost of materials. Practically many individual mortgage underwriters prohibit the borrower from performing their own work.
Can I increase the amount of the loan if I want to do more work?
Once the loan has been closed the amount of the loan cannot be increased. The scope of work can be expanded with a change order utilizing the contingency. The contingency may be between ten and twenty percent and is used to take care of unforeseen problems that may arise. If the contingency funds are not needed they can be applied for a change order. Any unused contingency is used to pay down the loan.
What can Professional Property Inspection do for me?
We are HUD-approved FHA 203K consultants. As an architect David Tamny, AIA can help you make sure that you have included what you need in your project and advise you as to whether your contractor's scope of work and costs make sense.
The Path with FHA Loans in Columbus, Ohio
Getting an FHA loan in Columbus, Ohio, offers a pathway to homeownership for many individuals. The Federal Housing Administration (FHA) loan program provides an opportunity for first-time homebuyers and those with limited financial means to secure a mortgage with more flexible terms and lower down payment requirements.
Columbus, as a vibrant and growing city, presents an attractive real estate market. With an FHA loan, prospective homebuyers can navigate this market more confidently.
What Are The Advantages of an FHA Loan in Columbus, OH
The primary advantage of an FHA loan lies in its accessibility. For many, the down payment requirement of only 3.5% of the home's purchase price makes homeownership achievable, especially for those struggling to save a large sum for a down payment. This reduced barrier to entry into the housing market widens the scope of potential homeowners in Columbus.
Moreover, FHA loans tend to have more lenient credit score requirements compared to conventional loans, allowing individuals with less-than-perfect credit histories to qualify. This flexibility helps prospective buyers who might not meet the stringent credit criteria of traditional loans.
In Columbus, where the real estate landscape offers diverse options in various neighborhoods, an FHA loan opens doors to exploring different areas. Whether it's the historic charm of German Village, the family-friendly atmosphere of Clintonville, or the vibrant energy of the Short North, FHA loans enable buyers to consider a wide range of neighborhoods that fit their preferences and budget.
What Are The Benefits of an FHA Loan in Columbus, OH?
However, while FHA loans have numerous benefits, they also come with certain considerations. Borrowers are required to pay mortgage insurance premiums, both upfront and annually, adding to the overall cost of the loan. Additionally, there are limits on the loan amount, which vary depending on the area. In Columbus, these limits may affect buyers considering higher-priced properties.
Navigating the process of securing an FHA loan in Columbus often involves working with knowledgeable lenders who specialize in FHA financing. These professionals guide buyers through the intricacies of the application, helping them understand the eligibility criteria, paperwork, and steps involved in securing the loan.
In conclusion, obtaining an FHA loan in Columbus, Ohio, opens doors to homeownership for many individuals who may face financial constraints or have credit challenges. It's a valuable tool that fosters inclusivity in the city's diverse and thriving real estate market, allowing more people to achieve their dreams of owning a home in this dynamic and welcoming community.
Why Choose Us As Your FHA 203K Consultant?
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Architectural Expertise: Our team merges the precision of home inspection with the architectural finesse, providing a comprehensive understanding of your property's potential. With our in-depth knowledge, we identify structural opportunities, suggesting ways to optimize your space for FHA compliance while maximizing its architectural strengths.
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FHA Compliance Mastery: We specialize in FHA requirements, ensuring your property meets the necessary standards, guiding you through the process seamlessly. Our deep familiarity with FHA regulations allows us to navigate complex guidelines efficiently, saving you time and ensuring a smoother approval process.
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Tailored Insights: Gain personalized guidance tailored to your property's unique features, empowering you with insights to optimize your home for FHA approval. Our detailed consultations offer customized recommendations specific to your property's layout, addressing concerns and highlighting opportunities for enhancement.
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Holistic Assessment: We go beyond surface inspections, delving into structural integrity, safety, and compliance, ensuring a thorough evaluation of your property. Our architectural background enables a comprehensive review, covering all facets of your property to ensure a holistic assessment that aligns with FHA standards.
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Transparent Reporting: Our reports are detailed, transparent, and easy to understand, offering a clear roadmap for addressing any potential FHA concerns. Through comprehensive reports, we provide clear explanations of findings, empowering you with actionable steps to rectify issues.
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Problem Solvers: With our architecturally-informed approach, we identify potential issues and offer solutions, enhancing your property's FHA eligibility. Leveraging our architectural expertise, we offer innovative solutions to resolve compliance issues, ensuring your property aligns with FHA standards.
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Client-Centric Approach: Your needs are our priority. We engage in open communication, guiding you through the FHA process with clarity and support. We prioritize clear communication, ensuring you understand each step of the process and feel supported throughout.
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Peace of Mind: Trust our expertise to navigate the complexities of FHA compliance, giving you confidence and peace of mind in your homebuying journey. With our thorough assessments and guidance, you can proceed with confidence, knowing your property meets FHA standards and is ready for the next steps in homeownership.