203k Renovation Loans - GREAT avenue for helping your buyers!

Hi Losi, Id like more info on that 203k Renovation Loan an thanks for sharing, Jim

Hi Lois, Id like more info on that 203k Renovation Loans also! Thanks, Les

Hi Les. I'm working another post with some bullet points about the loans that I'll probably have on by tonight or tomorrow at the latest. It should answer a lot of questions and open up some new ideas for you. Stay tuned!

I am also interested and watching the thread for now.

let them be aware of the drawbacks and financial caps that can delay a closing as well as have it go through in the normal timespan as a convential closing

Also, while most are pre-qualified for them, alot of time, a good number do not ultimately qualify.

Good and bad points of using a 203K, but if you do not know much about them do not suggest them until you do.

Hope it helps.

Thanks for the info. I think it would be good for the buyer that wants to live in that house and has the money and credit to buy a home. But for most of us investors that already have a lot of mortgages it will not help us. Still good information for the end buyer that wants to live in the home.

Thank you.

Steve

Does 203k Loan have down payment assistance even with bad credit?
All I need is that first break to get my foot in the door.
Hope you can help me.

Thank you.

The keys to a successful 203k loan are to use only a 203k approved lender who can demonstrate a very high closing ratio and a realtor who absolutely knows the necessary steps from beginning (qualifying with a lender) through the closing and renovation. You have to purposefully seek for those because as I said before, many lenders don't do the loans because they are more work for them, and many realtors don't mention them because it takes longer to close.

But done the right way, it is possible to get a LOT more house for the money you have to spend and to walk into some significant equity at closing. The caveat is that you have to live in the property for a year before you can resell it. Two scenarios that would work beautifully with this:

1. An investor who wants to buy a single family house, live in it while remodeling, then resell it after a year.

2. An investor who wants to get into multi-family properties. This loan works for up to a 4-unit property. An investor could live in one of 4 units (or 2, or 3), rent out the others to cover the mortgage and cash flow, and after a year, move out and rent out all the units or resell it.

Just another tool in the toolbox!

FHA 203K is an owner occupant product. Investors still have FHA flipping rules to deal with, you're waiting 90 days to sell, period.

If you sell for more than 20% of what you paid then 2 appraisals are required. The AS-IS appraisal is at the seller's expense per FHA. This applies until 180 days after purchasing the property.

Yes, 203K Loans can help investors and wholesalers, but they'd better understand the rules. Institutional investors are exempt, private investors are not.

For the cash investors/ buyers - if you buy cash and want to refi 203k then you wait ONE YEAR to use a new appraised value. If not, you are required to use acquisition cost / purchase price as appraised value.

If you want to buy, fix, live and flip then you'd better live there for a year and show motivation if you want to get through underwriting.

Use this product correctly.

http://www.203KLoan.net

Thank-you for the info, always good to learn about new ways to do things,it is just up to us to find out all that we can so we would be able to make the right decisions.