The FHA 203k program is specifically for primary residence properties only. It is not intended for investment purposes in the sense of buying a home, renovating it with the FHA 203k, and then selling it. A process that is better known as “flipping.”
There is, however, a situation in which someone could legitimately utilize the FHA 203k in an investor-like fashion. If a homebuyer were to purchase a multi-unit (multi-family) property in which one of those units were their primary residence, then they could use the FHA 203k to renovate the entire property (up to … (3 comments)
fha 203k mortgages: FHA 203k Mortgage and a sample situation
- 05/03/11 12:00 PM
One of the best parts of FHA 203k mortgages is that over night your property can "Poof" have equity! Who would have thought that is possible in this real estate environment- not most people so let me explain in detail how this works. Current Home Specs and Estimated Value You own a home that is currently worth $300,000- here are the details of the property: 3 Bedrooms 2 Bathrooms 2100 square feet This home as it sits is worth around $300,000 or so. This customer has a mortgage that has a balance of $295,000. So from first glance most borrowers would … (30 comments)
My blog is here to provide information regarding FHA 203K loans and conventional renovation loans for both purchase and refinance. Updates, tips and advice regarding these loans and the industry is what you will find on this blog!
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