FHA 203(k) allows the cost of rehabilitation or home improvement to be included in a purchase or refinance loan and work. One loan finances the purchase and improvements.

The 203(k) is a great marketing tool that can bring added value to real estate agents. While it is a great tool to rehabilitate trashed REOs it also can be used to upgrade homes. The primary criteria are: the improvement is a permanent part of the real estate and the improved home's value must be comparable to similar homes in the neighborhood.

There are many uses for the 203(k)

  • Rehabilitate
  • Energy efficient improvements 
  • Rebuild
  • Remodel
  • Add Rooms
  • Move homes to new lots. •
    • 203k cannot be funded until home is permanently secured to new foundation.
  • Start with an existing bare foundation and build a new home.

Underwriting guidelines for borrower are the same a regulor FHA

  • Must be owner occupied
  • There are no borrower income limits.
  • No purchase price restrictions
  • Borrower's minimum investment is 3.5%

Finding an experienced, financially stable contractor is key.

  • Contractor must understand 203k guidelines
  • Must have the financial ability to carry a portion of the project until they are paid,
  • Their bid must be accurate because there is no additional funding after close of escrow.

Education is Consumer's Only Real Protection. 

Your FHA GuruBill Ladewig

800.664.7283 (SAVE)

Bill@YourFhaGuru.com

Website

 

 

 

Bill Ladewig is a Mortgage Broker Licensed by the California Department of Real Estate 00968137

NMLS #291249

 

 

 

 

San Diego FHA and VA Home Loans Escondido Mortgages Escondido Localism San Diego FHA and VA Home Loans San Diego Localism San Diego UFMIP Escondido Mortgages Escondido Localism San Diego Mortgage Ultimate Mortgage Calculator

 
This post has been included in California Real Estate News
Post is included in group: Century 21 Active Rainers
Post is included in group: Keller Williams 'Rainers
Post is included in group: Realty Executives
Post is included in group: RE/MAX Active Rain Bloggers
Post is included in group: San Diego North County Real Estate

0 Comments on FHA Rehabilitation Loans - What you need to know
What does the graphic say?
Leave a response…

(optional)
Spam Prevention:
 
Bill_600_x_720 Rainmaker_large

Bill Ladewig Your FHA Guru - FHA and VA Loans Since 1970

Escondido, CA

More about me…

Address: San Diego, Escondido, Vista, San Marcos, Oceanside, Rancho Bernardo, Poway, Scripps Ranch, Penasquitos, Shadowridge, Rancho Del Oro, Escondido, CA, 92025

Office Phone: (866) 204-9733

Cell Phone: (760) 685-0480

Email Me



Listings

Links

Archives

RSS 2.0 Feed for this blog