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FHA 203(k) financing – General Guidelines

Reblogger Greg Gillespie

Real Estate Broker/Owner with GumTree Realty / Genesis Realty Services,Inc B 20376

February 25, 2012 04:59 AM

FHA 203 K - Rehab Financing Loan.

Here is the best option for properties that need extra work, and will not qualify for conventional mortgage loan. Other wise, a home buyer would have to come up with cash, wait for the title to season, and then try and refinance. This is such a better solution.

The FHA 203(k) rehab financing follows the same general guidelines as the regular FHA 203(b) loan.

Here are a couple of program characteristics that apply to the FHA 203(k) loan:

·        allows the borrower to finance up to $35,000 for repairs

·        can be used with the $100 down HUD REO property

·        the repairs can be completed after closing

·        the loan must have an automated underwriting approval

·        the credit eligibility is the same as other FHA programs

·        Cash out refinance is are not allowed

·        one time closing

·        rehabilitation funds escrowed by lender and disbursed as work is completed

·        can be used to update the home, correct health and safety issues, or pay for high-cost items such as roofing, flooring, HVAC, or appliances

Here is a link for additional information on the FHA 203(k) loan program:

FHA 203(k) Financing - Eligible Properties

F's or more information about this financing program please give me a call.

Kathleen Sheehan
Sr. Loan Officer, MiLEND, Inc.
Office: 770-220-7208

Cell: 770-634-4021
Fax: 770-220-7209
ksheehan@milend.com
NMLS #206275
Georgia Residential Mortgage Licensee #25839

Apply Today!

MiLEND, Inc.
1155 Perimeter Center West
Suite 600
Atlanta, GA 30338
NMLS #148769

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Kathy Sheehan

Bay Equity, LLC 770-634-4021 - Atlanta, GA

Senior Loan Officer

Greg, thanks for the re-blog. It is a great program for eligible properties.

Feb 25, 2012 06:02 AM

Charles Stallions Real Estate Services

Charles Stallions Real Estate Services Inc - Gulf Breeze, FL

Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.

A great program and my folks have used these a lot, they can come in handy for repairs and more.

Mar 04, 2012 07:30 AM

Anonymous

Paul Welden

Good re-post of information on the 203k. However, some clarification is needed.

This 203k information posted here is only regarding the Streamline 203k (limited to $35k), because the Standard/Full 203k is limited by the FHA maximum mortgage limit, which for Madison county is $271,050 for a 1-family unit and $521,250 for a 4-unit. So, if a borrower is purchasing a single family property for $100k, the Standard/Full 203k allows for ~$170k in improvements.

While this post is accurate for the Streamline 203k (introduced in 2005), don't forget about the Standard 203k, which has been around since 1978 and allows for a lot more renovations, including structural.

Information Desk
203kContractors.com®
Certified 203k Contractor National Directory

Mar 13, 2012 11:27 AM

FHA 203(k) financing – General Guidelines

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