The Department of Housing and Urban Development or HUD's program for the rehabilitation of the existing stock of houses in the country is something that has gained a lot of support from low-income groups. The reason why this program, termed the HUD 203K loan program, has been such a hit with low-income groups is simply that it allows individuals from such groups to get money for rehabilitating their homes. The primary objective of the program is to allow people to get money at low interest rates and convenient amortization periods, so that they can improve the state of their homes. While the program is a big hit with the people, most people still do not know the basic procedural facts pertaining to it. For example, one of the most important aspects of getting a 203K loan would be the forms that are needed for the application. Here is a list.
1. The Homeowner - Contractor Agreement:
This form, as the heading suggests, is used by the contractor to list and specify the work that needs to be done on the property. The list of work to be done will be assessed by the relevant authorities.
2. FHA Amendatory Clause and Real Estate Certification:
This form is for people who require the loan to not only rehabilitate a property but to also purchase it beforehand. These forms would need the signatures of the borrower or buyer of the property, the seller of the property and the real estate agents involved in the process.
3. Identity of interest certification:
This form primarily exists to prevent any misuse of the 203K loan program by different people. This form requires the borrower and any consultants that are involved in the process to state that they do not have any relationship with the seller of the property or any other parties involved in the whole transaction.