Posted on: 09th Apr, 2009 09:25 am
I am purchasing a property in NY for 135K I need about 10K
in funds for repairs. How will this 10K be disbursed? I have a quote for the 10K from a contractor but I am doing most of the work myself. Do I dish out the cash first or will I have to pay for it and then get the funds?
in funds for repairs. How will this 10K be disbursed? I have a quote for the 10K from a contractor but I am doing most of the work myself. Do I dish out the cash first or will I have to pay for it and then get the funds?
if you are trying to obtain a 203k loan, and want to complete most of the work on your own, you're going to have to be able to demonstrate that you have the expertise and the time to do such work for your lender. that is a first step.
once you close on your loan, the seller of the home gets paid off, and realtors, etc. get paid also. the repair money goes into an escrow account. once you've finished the work, you can request a disbursement of the funds held in escrow to pay the cost of repairs, including materials, etc. you'll have to finish all of the work entailed before you can get this disbursement.
so yes, you have to "dish out the cash" and get paid for it later.
once you close on your loan, the seller of the home gets paid off, and realtors, etc. get paid also. the repair money goes into an escrow account. once you've finished the work, you can request a disbursement of the funds held in escrow to pay the cost of repairs, including materials, etc. you'll have to finish all of the work entailed before you can get this disbursement.
so yes, you have to "dish out the cash" and get paid for it later.
This sounds like it could be a 203k Streamline where the contractor(s) can get half of their money up front at closing and the other half when the project is completed.
_________________________
Mike Young
203k Consultant
MY203kConsultant
4410 Friendship Drive
Suite A
Matthews, NC 28105
1-877-207-6565
_________________________
Mike Young
203k Consultant
MY203kConsultant
4410 Friendship Drive
Suite A
Matthews, NC 28105
1-877-207-6565
