Plan on 45–60 days from contract to close for a Limited, 60–75 days for a Standard. Here’s exactly what happens week by week, and what causes delays.
Week 0: Pre-qualification (1 day)
Before you’re under contract, you pre-qualify. That’s a soft credit check and basic income verification. Takes 15 minutes on the phone or 60 seconds online, and you walk away with a real pre-qualification letter.
Weeks 1–8: House hunting (varies)
This isn’t really part of the loan timeline – but it’s the phase where most buyers spend the most time. Because you’re pre-qualified for a renovation loan, you can look at homes other buyers can’t finance. Less competition often means you find something faster.
Day 1 after contract: Application goes in
As soon as you have an accepted offer, we submit the full loan application and order the appraisal. You provide income docs, bank statements, and ID.
Days 2–7: Consultant engagement (Standard 203k only)
For Standard 203k, a HUD-approved consultant walks the property with you, identifies required repairs, and helps plan your upgrades. This produces the “Work Write-Up” – the scope document contractors bid against.
We line up the consultant from our approved network, so there’s no scrambling on your end.
Days 7–14: Contractor bids come in
Contractors review the scope and submit bids. For Limited 203k, you only need one bid. For Standard, we typically get 2–3 for comparison.
If you don’t have a contractor, we connect you with one from our network who knows the 203k process.
This is where deals stall most often. Contractors who’ve never done a 203k often underestimate the paperwork and pull out. Using someone who knows the program is critical.
Days 10–21: Appraisal
The appraiser uses the contractor bid to determine the AFTER-repair value. This is what your loan is based on. Unlike a regular appraisal, they’re valuing the home as it will be when the renovation is complete – not its current condition.
Days 14–35: Underwriting
This is the paperwork phase. Our team reviews your credit, income, assets, the contractor’s license and insurance, the appraisal, and the consultant’s work write-up. We may come back with requests for additional documentation.
Most common hold-up: unclear sources of funds, employment verification delays, or a document the borrower thought they sent but didn’t.
Days 35–45: Final approval + clear to close
Once underwriting is complete and all conditions are cleared, we issue “Clear to Close.” The closing disclosure goes out at least 3 business days before closing (federal law).
Days 45–60: Closing
You sign. You pay your down payment (3.5% of total) and closing costs. The seller gets paid for the purchase portion. The renovation money goes into a lender-controlled escrow account.
Day 46–60: Work begins
Work must start within 30 days of closing. Your contractor is paid from escrow as milestones are hit and inspected.
Weeks 2–26: Renovation
Depending on scope:
- Cosmetic Limited 203k: 4–8 weeks typical
- Moderate rehab: 8–16 weeks
- Major Standard 203k with structural work: 4–6 months
- Maximum allowed: 6 months Limited, 12 months Standard
End of renovation: Final inspection, move in
Final inspection confirms the work is complete. Any remaining contingency funds are applied to your loan principal. Closing documents are finalized with FHA. The home is yours.
What actually causes delays
Here’s what slows files down, in order of frequency:
- Inexperienced contractors. Bids don’t match the consultant write-up, insurance expires, license can’t be verified.
- Borrower documentation gaps. Missing pay stubs, unexplained deposits, gift letters that aren’t formatted right.
- Appraisal issues. Appraisals come in below total loan or flag property condition concerns we didn’t know about.
- Scope creep. Buyer wants to add to the rehab after bids are in. Resets the whole process.
- Seller issues. Title problems, seller won’t allow consultant access, HUD-owned property requires extra steps.
How to close faster
- Have your documents ready before you go under contract
- Use a contractor with 203k experience (we can refer)
- Don’t change the scope once underwriting starts
- Respond to document requests within 24 hours
- Work with a 203k specialist, not a generalist LO
Our track record
We close most Limited 203k files in 42–50 days and Standard 203k files in 55–65 days. That’s meaningfully faster than industry averages, and it’s because we’ve done thousands of these – we know where the files stall, and we push on the right things early.