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bail out planIf you're like my friends, you're trying to figure out how to get your little piece of somebody's bailout!

With the economy in such bad shape - and the number of foreclosure notices in today's N&O filling 5 full pages - there are a ton of people who are out there trying to "find a deal."

If you're in that boat, and you are purchasing property to LIVE IN, then the 203K loan might be a good property for you!  The 203K is a FHA program that allows you to borrow between 5k and 35K, in addition to the home, fix it up!  The money can be used to buy appliances, fix the roof, new carpet - most repairs you might need for a home, with the EXCEPTION of gaining more square feet.  If you're trying to add a room onto your home - this is not the program you're looking for.

Because it's an FHA program, you can only borrow a total of $295,000 (if it closes by December 31, 2008) or $271,050 if you close in January.

For more information on this loan, and to see if you qualify - click here - or call us!  We'll be glad to answer any questions!

 
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12 Comments on What is a 203K Loan?

NOV
12
2008

203k loans rock, such a great program for this market
7:51pm • #1
NOV
16
2008
102,091 Points Outside Blog

How does this differ from the rehab loans of the past?
6:20pm • #2
NOV
17
2008
451,458 Points 2 Featured Posts

Thanks for posting this - really helpful. Janice
7:50am • #3

Great info, I think most agents need a "primer" on how it works because it is a great program.

 

Thanks for sharing,

 

Jim
11:29am • #4
160,384 Points Outside Blog Hit Router

Eleanor and Steve:

I have been brushing off the 203K in my office. We hadn't need it for years. Now, it is perfect for the homes that need work.

 

Richard
11:38am • #5
1 Featured Post

Very interesting... I'm going to have to look into that program... I have some buyers that are trying to take advantage of the low prices! Thanks!! ~A:)
3:50pm • #6

We offered on a foreclosure property.  the bank had already done a pest report with 13 items listed as Section 1's.  Our loan company, Wells Fargo, said we only needed to fix 3 of the sections 1's.  Well, anyways, we got as far as signing all loan docs and deed and wiring money to title and right before they were going to fund, Wells said that we had to fix All section 1 items?  Why the hell did they not tell us this from the very beginning?  So now we have to go back to the seller, Washington Mutual, and ask them to do the repairs.  Why would they have accepted out offer in the first place if they knew the condition of the propery and didn't say a damn thing about it.  The had the pest report done 1 month before accepting our offer!  Our realtor suggested a 203k loan if the seller says no, but we do not want to go there.  We were so close!!!...should the seller pay for this because now we are so far along that we would jeopardize our deposit if we pull out.  It is going on almost 3 months now!!!
Amy
5:14pm • #7
NOV
28
2008
688,790 Points 117 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Eleanor,

I'm just getting started with these, so THANKS for the post.  I've only been originating for five years, so I'm grateful to people like you and Steve for blogging.  You're a tremendous help!

Mike in Tucson
2:36pm • #8
507,615 Points 9 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

That you for the information on the 203k loan. This is a remainder to me of a e-mail a loan officer sent to me about the loan program about a month ago. I think this will be a great program for investors. Great post.
2:50pm • #9
DEC
05
2008
1 Featured Post Outside Blog

Lanre,

I believe the 203K program is not longer offered to investors.

Hey, you win some you loose some.

 

Amy,

Sorry to hear about your problem transaction. In cases like this you need to be able to depend on your local real estate professional. If the agent you are working with can't help ask to speak to their broker. If that broker can't help, ask them to release you from any agreement you have with them and go find a decent buyer agent or exclusive buyer agent.

You really shouldn't need to post here for advice.

Good luck!
11:49am • #10
MAR
16
2009

That is what is sweet about the 203k... you fix after it closes escrow. 
Mike Young, 203k Consultant
3:13pm • #11
MAY
21
2009
174,246 Points Outside Blog Attended Rain Camp

Beginning investors can purchase a 203k property. The problem is finding one they might do well with. If they purchase a building that becomes a fourplex after the rehab it is a potential 'investor property'. i like to see you find  a 6-8 unit building that is within the loan limits and turn it into large units with the borrower living in one unit and renting out the other three. If you have larger units like 4 bedroom units and more you will draw larger rents. The borrowers can move on in a year or two and rent out the unit they were living in. The loan limit for SFRs in Wake County is back up to $295,000 but for a fourplex it is up to $567,300 so you have a little more room to work with and a portion of the additional units rents can be used to help the borrower qualify for the loan. Typically if a borrower can qualify for a SFR they likely can qualify for a fourplex. 

Check out what your long term goals are for your clients. If real estate investing is what they want to do in a few years, maybe a 203k can get them started sooner and your commissions are higher on larger sales people.

M
9:00pm • #12

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Steveb Rainmaker_large

Steve and Eleanor Thorne, Johnston Co Mortgage Loan Officer, NC 919-649-5058

Clayton, NC

More about me…

River Community Bank NMLS #60596

Address: Corning Road, Garner, NC, 27529

Office Phone: 919

Cell Phone: (919) 649-5058

Email Me

Johnston County biased blog dedicated to providing information about FHA, VA mortgages, USDA home loan and conventional mortgage loan information for Smithfield, Clayton, Benson, Wilson Mills, Dunn, and other parts of Johnston County. Highly experienced mortgage loan officers with best rates in the area!


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