Ryan Lee just sent me a great set of guidelines, something I’d almost forgotten about… until today. The FHA 203K program can be compared to the single close construction loan. For qualifying borrowers & homes one can borrow more than the purchase price for a home, with the balance placed into an interest bearing account. The money can be then used to complete the repairs on the dwelling.This program is perfect for those wishing to get a fixer upper without the liquid cash to perform needed repairs.There are some specific requirments, so working with a reputable lender is key. A few of the main constraints:
- Home must appraise at a value (with intented repairs) at an amount sufficient for the loan to value ratios of the program
- No self help (bummer huh?)
- No more than 2 contractors (contractor must also be an FHA approved contractor)
- Payments subject to final appraisers walk through for dispersement of funds
Other than that – simple as pie! This program may bode well for a distressed bank property needing paint or a new roof to pass inspection. Amazingly this program is also available in a streamlined refinance for current homeowners needing a refinance to make needed repairs.Please be sure to contact us if you’d like more information about this great product!
