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NJ-PA-DE-MD-VA Rehab loans - NJ FHA 203K

By
Mortgage and Lending with AnnieMac Home Mortgage NMLS #38670

While most FHA lenders look down on repair escrows and wanting to hold back money on loans the easy way around this is the FHA 203K rehab loan.  I am located in Mt. Laurel, NJ and recently my Realtors have been asking specifically for FHA 203K rehab loans because the banks are now requiring this as a condition to accepting an offer on bank owned properties, why? 

This is simple- most foreclosures have work that needs to be done in order to satisfy HUD/FHA minimum property requirements.  You cannot get around this with a typical FHA loan and the options are limited.  FHA 203K loans allow you to do both minor and major repairs on the property.  And get this- they allow you to go up to 110% of the appraised value of the property after rehabilitation. 

Who thought that 100% + financing was dead!  Its not and FHA will allow you to do this with only 3.5% down on purchase.   

If you are considering buying a foreclosure property or thinking you might like to rehab your current one contact me and I will be happy to run through with you your options using an FHA 203K loan.

Comments (3)

Tim Bradford
Cleveland, OH
NMLS 250013

Jeff,  I like your series of posts about the FHA 203K product.  I advocate them here in Ohio.    I will be following future posts.  Besides the uses and reasons for a 203K loan, I believe using them is a great way to purchase the many HUD REO properties.  Most of them do require some repairs but not that many.   I think it would be better for buyers and everyone if these became Owner Occupied properties off the bat instead of letting an investor purchase them, then do the little work and resell them with them earning the value pricing on the HUD REO sale. 

Nov 11, 2009 03:28 AM
Jeff Onofrio
AnnieMac Home Mortgage - Mount Laurel Township, NJ
FHA 203k Lender and Homestyle Reno Specialist

Thank you Tim.  I am trying to keep on top of it.  I havent done alot of blogging in thepast but I am now starting to see the power of it and it seemsto be a good way to get the information out and to also network with good people.  I appreciate your comment and look forward to talking to you again!

Nov 11, 2009 08:14 AM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

The 203k loan is an under-utilized tool. Many buyers could create equity by using the FHA/203k loan to buy and renovate homes that need some work.

 

Aug 11, 2017 09:02 PM