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Do you want to fix up a home? Consider a HUD FHA 203 (k)

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Real Estate Agent

Do you want to fix up a home? Consider a HUD FHA 203 (k) - - -

This loan program is intended for the rehabilitation and repair of single family properties of up to 4 units. Many lenders use this loan program to assist borrowers, sometimes even in cooperation with other programs offered by local housing authorities, as well as state and federal agencies.

House Painting in Progress

It is even possible to combine other financial programs like the current HOME and HOPE programs also offered by HUD.

A few of the features and intentions of the FHA 203 (k):

  • To preserve and restore the Nation's existing housing stock
  • One loan for both purchase and the planned rehabilitation
  • Funds can also be used for refinance with intended rehabilitation
  • Funds can be used for 1 to 4 family buildings at least one year old (can add or decrease units in this range)
  • Move a building from another site and do the rehabilitation on the new loan site
  • Funds can be used for painting, room additions, decks, even if the rest of the dwelling does not need rehabilitation, but all life safety issues must be addressed in the dwelling
  • Funds can be used to increase energy efficiency and even add solar energy elements (go green)

Other options and restrictions apply, so if you have an interest in exploring these housing finance programs, ask your Realtor ® to locate suitable property and a lender that can evaluate these and other financing options.

If you'd like to read more information online, you can go to the HUD website on the FHA 203 (k) program.

 

Comments(4)

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Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

This is a home run Frank.  This is some great information for all buyers to know!!!!!

Jan 05, 2010 08:02 AM
Frank Kliewer
Woodinville, WA

Thanks Larry, that means a lot coming from an FHA specialist like you. Just hope today's buyers get the right information about all the options they have, particularly the first timers.

Jan 05, 2010 08:54 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Great info Frank...I am finding that many of my potential buyers are looking at turn key or real run down.  Not much inbetween!

Jan 05, 2010 08:54 AM
Stephanie Reynolds
Integrity First Financial Group, Inc. - Santee, CA
East County San Diego Homes 619-838-4408

This is a great program and surprisingly there are a lot of homes our there that will qualify for this type of financing.

Jan 05, 2010 09:13 AM