Real Estate Magazine

FHA 203K Rehab Loans

Posted on the 30 June 2011 by Homesmsp @HomesMSP

Many of the homes listed for sale are foreclosures and need some work.  If you are looking at a home that needs repairs or if you want to remodel your home, a FHA 203K loan may work for you.  It is a mortgage that allows you to buy a home (or refinance) and make repairs as part of the mortgage.

There is a streamline version of this loan that allows for repairs up to about $35,000 including some of the loan costs.  You can not do any structural changes to the home, but you could replace the roof or windows, update the furnace and plumbing, replace siding, carpet and paint. 

The full 203K allows for large and small dollar projects including room additions and garages.  If it affects the frame or structure of the home, it must be a full 203K.  The full 203K requires the use of a HUD consultant so there is an additional fee of up to $1000.

If you are thinking about doing a rehab loan, you will need bids from licensed contractors.  Once the bids are in, we can determine whether it is a streamline or full 203K and what your loan amount will be.  The appraisal is based on the final improved value.  The work must be done by licensed contractors, so you can not do the work yourself unless you are a licensed contractor.  The work must begin within 30 days of closing and must be completed within 6 months of closing.  You need to allow for extra time between writing your purchase agreement and closing to allow for the contractor's bids.


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Shilo Sanders- Son Of Deion Sanders Thanks Courts For Allowing Him To Live With...

    Shilo Sanders- Deion Sanders Thanks Courts Allowing Live With Pilar

    ChristianNews Shilo Sanders, the son of NFL Hall of Famer,  Deion Sanders took to twitter to “thank” the courts for allowing him to live with his mother, Pilar... Read more

    The 04 August 2017 by   Firstladyb
    SPIRITUALITY
  • “I Feel Great”

    Feel Great”

    Jakub went to his doctor's office believing that he had a back injury, but returned with a chocking diagnosis instead. He had type 2 diabetes - in spite of... Read more

    The 04 August 2017 by   Dietdoctor
    DIET & WEIGHT
  • July Allotment Recap (2/2)

    July Allotment Recap (2/2)

    Sunday afternoon saw us return bravely to 24a even though there were more thundery showers foretold by the weatherman. I will admit that I guffawed at the... Read more

    The 04 August 2017 by   Chrryblossomtat2
    GARDENING, HOME
  • Culinary Delicacies in Croatia- What to Eat and Drink in Croatia

    Culinary Delicacies Croatia- What Drink Croatia

    In my earlier post, we spoke about how Croatia is a stunning European destination, let us now see what are the culinary delicacies in Croatia or what you can... Read more

    The 04 August 2017 by   Kash Pals
    FOOD & DRINK, A-CLASSER
  • #Golf Training Aids Spotlight: The Delta Putt

    #Golf Training Aids Spotlight: Delta Putt

    Do you consider yourself to be a strong putter or do you feel you could improve your make percentage on the green? Most amateurs could use help with the flat... Read more

    The 04 August 2017 by   Golfforbeginners
    GOLF, SPORTS
  • Three Incredible Hikes in Southern Iceland3 Min Read

    Three Incredible Hikes Southern Iceland3 Read

    Nature takes center stage in Iceland, where there's a stunning view around every bend: massive glaciers, expansive lava fields, powerful waterfalls, black sand... Read more

    The 04 August 2017 by   Healthytravelblog
    TRAVEL
  • What I Wore: Daytime Pajamas

    What Wore: Daytime Pajamas

    Pajama top: ELOQUII (14) | Pajama pants: ELOQUII (14) | Shoes: ASOS (similar) | Earrings: J. Crew ( same in different colors, similar concept in same color) |... Read more

    The 04 August 2017 by   Wardrobeoxygen
    FASHION, SELF EXPRESSION, SHOPPING

COMMENTS ( 1 )

By Kevin the 203k loan guy
posted on 08 July at 00:32
Report spam/abuse

Both 203k loans can solve many issues that lenders have with properties, like health and safety issues. That can be broken windows, a broken heater, a roof in need of repair, but you can also get new carpet, paint and even appliances which really helps out the cash strapped home buyer. Now we just have to get the Realtor community to warm up to this unique product! 203k loan

Magazine