We won't pretend a 203k is as simple as a regular purchase - it's not. But it's also not mysterious. Here's every step, in order, so you know what to expect.
You fill out the online pre-qualification form (5–6 questions, about 60 seconds) or jump on a 15-minute call with Jay's team. We pull a soft credit check, look at your income, and give you a real pre-qualification letter the same day.
At this step we'll also talk through your project vision - even just ballpark - so we know whether you're looking at a Limited or Standard 203k.
You shop for homes with your agent (or we can connect you with one from our partner program). Because you're pre-qualified for a renovation loan, you can look at homes other buyers can't touch: foreclosures, homes with deferred maintenance, dated interiors, HUD homes, short sales.
Pro tip: fixer-uppers have less competition. You're not in a bidding war with 11 other buyers.
Once you're under contract, a HUD-approved 203k consultant walks the property with you (required for Standard 203k, optional for Limited). The consultant identifies every required repair AND helps you plan the upgrades you actually want.
The consultant produces a detailed "Work Write-Up" - a list of every line item with specs. You take this to 1–2 general contractors for competitive bids.
If you don't have a contractor lined up, we'll connect you with one from our network.
The appraiser uses the contractor bids to appraise the home at its AFTER-repair value. That number is what your loan is based on - not the current beat-up condition.
Meanwhile, our team is underwriting the loan (income, credit, assets), reviewing the contractor's license and insurance, and assembling the file for FHA endorsement.
You go to closing. You sign. You pay your down payment (3.5% of the total) and closing costs. The seller gets the purchase portion of the loan. The renovation money goes into an escrow account that the lender controls.
Work must begin within 30 days of closing.
Your contractor starts work. As milestones are hit - demo, framing, drywall, finishes - the consultant (Standard) or you + lender (Limited) inspect the work and approve a draw request. The lender releases funds from escrow to the contractor.
You don't pay contractors out of pocket. Ever. They're paid from escrow as work is completed and verified.
If the home isn't livable during work, up to 12 months of mortgage payments can be financed into the loan so you're not paying rent and a mortgage simultaneously.
Final inspection confirms the work is complete. Any remaining funds in escrow get applied to your loan principal (lowering your balance). The consultant signs off, the file is closed out with FHA, and the home is yours.
You live there for at least 12 months. After that, you can refinance, rent, or sell - whatever fits your plan.
