203k Loan Closing Checklist

Fortunately for borrowers, closing a 203k loan is typically a lot easier than getting approved for one. However, it can still be a somewhat complex process. To help you prepare, we’ve included a comprehensive checklist below that includes many of the documents you’ll likely need. However, documentation requirements can vary, so you’ll want to check with your title company to make sure you have everything you need to close.

  • Proof of insurance on the home being purchased (often contingent on renovations being completed).

  • Inspection reports (initial reports only – additional inspections are required).

  • Signed loan contract.

  • Rehabilitation loan agreement from the consultant.

  • Rehabilitation loan rider.

Note that the following documents may be required after closing, during the rehab process:

  • Draw request and rehabilitation report

  • Change order request (HUD 95277)

  • Contingency release letter

  • Lien waivers from contractors (prior to funds disbursement)

  • Mortgagor’s letter of completion stating that rehabilitation has been completed in line with what was outlined in other loan documentation.

  • Mortgagee’s assurance of completion if you are adding an EEM into your 203(k) loan.

  • Final release notice to close the escrow account.