OfflineThis is a loan that enables the homebuyer to finance both the purchase and rehabilitation of a home through a single mortgage. A portion of the loan is used to pay off the seller’s existing mortgage and the remainder is placed in an escrow account and released as rehabilitation is completed. Basic guidelines for 203(k) loans are as follows:
• The home must be at least one year old.
• The cost of rehabilitation must be at least $5,000, but the total property value including the cost of repairs – must fall within the FHA maximum mortgage limit.
• The 203(k) loan must follow many of the 203(b) eligibility requirements.
• Talk to your lender about specific improvement, energy efficiency, and structural guidelines.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
I recently purchased a few acres of property with a 600sq ft useless house, a real dump. Can I "rehabilitate" the house and include the installation of a 1800sq ft modular home that will be attached to the old house?
I purchased the property for $99,000 and the state/county value the property at $210,000.
203k loans was the vehicles that the FHA used to allow investors access to gov`t funds to purchase and rehab homes for resell as affordable homes.It`s called the 203k because it`s in Section 203 of HUD.Like Section 8 which most ppl know of.
You should be able to attach it to the existing home, but you should check with your local building codes and licensing division.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125