FHA 203k Loan Process

[Robert Fisher]

My wife and I are looking to put in a bid for a HUD home. I’ve tried Googling this but can’t get a clear picture of what exactly is required up front or if we’re even eligible. So I thought I’d bring my questions to BP. 1. We bought our current home with a FHA loan with 3.5% down. That was 5 years ago and I’m currently trying to get the PMI removed as we have paid down to below the 78% mark. But since we are still in this house, are we even eligible for the FHA 203k to buy a HUD home? 2. I know we will need bids from contractors for the either type of loan, but when will I need to get those? Im assuming between winning the bid and closing? But I’ve been told that if you win the bid for a HUD home you need to have your money lined up, so would that mean you need to get bids and everything in place before the bid?