WHAT IS A 203(k) LOAN?

catharin9 · Joined: 14 Jul 2009 Posts: 169 -0.07 Dollars($)

robertcampbell07 · Joined: 25 Aug 2009 Posts: 52 -0.11 Dollars($)

Section 203(k) program is HUD's primary program for the rehabilitation and repair of single family properties

203(b) loan can be used for one-to-four unit dwellings.

Maximum mortgage limitations are the same as for properties under Section 203(b).

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1735 35.94 Dollars($)

Sam has good post on this here

http://www.mortgagefit.com/rehabilitation.html

andrewward001 · Joined: 28 Aug 2009 Posts: 51 0.00 Dollars($)

It is an FHA loan meant to be used to borrow money to buy and additionally to repair a home.

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1735 35.94 Dollars($)

yep. In Short that's correct

gmakerley · Posted: Mon Aug 31, 2009 11:00 am Post subject:

in short, yes; but there's more. a 203K loan can also be used in refinancing, if a homeowner desires to do renovations/remodeling/repairs. down payment requirement is also 3.5% for these loans, though calculated slightly different from the standard fha product.

nelsoncarolyn1946 · Joined: 03 Sep 2009 Posts: 38 0.00 Dollars($)

203(k) loan program can help homeowners pay for a variety of home repairs and upgrades. it allows the borrower to take out just one mortgage to cover both the purchase of the property and the cost of upgrades.

gmakerley · Posted: Fri Sep 04, 2009 8:45 am Post subject:

and you know what i forgot to add to my post...if a property being purchased is in fine condition, but a buyer wishes to add to it, or renovate a portion of it, a 203k loan can be used for that purpose as well. it's not strictly for repairs or rehabilitation when purchasing.

lovegreg77 · Joined: 03 Sep 2009 Posts: 34 0.00 Dollars($)

Maximum loan amount can be:

Current appraised property value + costs of the repair work.

110% of the expected market value of the property

ross090909 · Joined: 04 Sep 2009 Posts: 82 0.00 Dollars($)

203(k) loan is a loan that enables the homebuyer to finance both the purchase and rehabilitation of a home through a single mortgage.This is capturing both the necessary things. A SINGLE portion of the loan is used to pay off the seller's existing mortgage and the ANOTHER remaining portion is used as an escrow account and released as rehabilitation is completed.

Basic guidelines for 203(k) loans are as follows:

1) The home must be at least one year old.
2) The cost of rehabilitation must be at least $5,000, But property value includng cost of repairmust be within the FHA maximum mortgage limit.
3) The 203(k) loan must follow many of the 203(b) eligibility requirements.
You can stress on you lender for following things-
1) specific improvement..
2) energy efficiency
3) structural guidelines.

jonunderwood007 · Joined: 03 Sep 2009 Posts: 38 -0.40 Dollars($)

203(k) program is HUD's primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities.

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