203k Rehab?
Does anyone know what this means? (the 203k rehab financed) (The property is only listed at $75k and the ARV about 95k or rental).
"Handyman Special! Great Investment Opportunity Or Could Be 203k Rehab Financed."
To much info for this reply. Go to the HUD web site and look up the 203-K program there.
Make sure you use a lender who has recent exp in processing and closing FHA 203-K loans. If the loan officer looks at you funny or asks you to repeat 203-K again....run fast to another lender. Done with an exp lender, the loan is a great and really simple process.[ Edited by Jimmmmm5 on Date 02/10/2004 ]
It is a loan that will allow you to include the rehab money in the loan. If it is FHA it must be owner-occupied. That program is used alot with wholesalers here in pgh,pa. You can buy a block of properties and sell them off to owner-occupied and get your company to do the work.
There are certain guidelines that have to be met.
Lori
[addsig]
I am a Loan Officer and can tell you a bitt about the 203K...It allows you to get a loan for a rehab worth 120% of the appraised value of the home after the improvements. You can even escrow up to 6 months in mortgage payments if it is some heavy duty construction. In my days, the best lender to use is MandT bank...they have a niche in the 203K arena. But be prepared...there is a lot to it. They will assign a special appraiser, a consultant and then there will be bidding for the construction. But never fear, HUD has a stronghold on the 203K, and will not make a draw to any construction company that does not get the job done right. When the job is complete, if you are under budget, the remaining money goes back to principal. Check out the HUD and Mand T websites....Good Luck....easy loan, becareful on fees....when a lender has a niche like this, they tend to charge more....should be no more than a few points. good luck!!!