203 loan

[Sebastian Naczas]

If I decide to do a loan with 203K and the house costs 100K and I need another 100K for fixing it ... do I pay 20% of the cost of the house (100K) or the total loan amount (200K)?

[Aaron Brown]

I will second what@Micki McNie said about getting a mortgage lender that is very familiar with a 203 k loan. There is a ton more paperwork that has to be done, and it is vital that they have experience. If they have done it before, then they will able to give you contractor references in your area that are qualified and experienced doing 203k loans. My mortgage guy was AMAZING in helping me push the deal through to close,  despite several obstacles, and extensions. He is a vital part of my team!

 The GC must be licensed bonded and insured. without a GC that is familiar with 203 k loans, and the paperwork and requirements they have to complete, a contractor can make you lose the deal as well. It almost happened to me...