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