A 203 K loan is a lone program that is offered through a list of available lenders that provides flexibility to a home buyer of existing homes (short sale or REO) who may have 3.5% of the value of the home available for a deposit, but does not have the available cash to purchase a home and then pay for the cost of renovations, repairs or maintenance that will make the home livable.
To be eligible, the following must apply:
property must be a one to four family dwelling that has been completed for at least one year, or a condominium unit that has been approved by FHA
You must plan to occupy the property after purchase, the does not apply to investors.
All rehabilitation must conform to a minimum standard, and "luxury items" are not eligible.
Maximum loan amount is the lesser of (1) the Sales Price (as is value) plus the total rehab and closing costs or (2) 110% of the after improved value of the home (by appraisal)..
Maximum mortgage amount can increase by up to 20%if such an increase is necessary for the installation of solar energy equipment.
The HUD FHA 203K Loan Program is a perfect solution for any buyer that is considering purchasing an existing home that may not be "move-in" ready - at least to your standards. The program is perfect if you are considering purchasing short sales or REO. If you want to purchase property at "distressed" prices, this is a great time and a great program, as if you are looking for short sales or REO they will not be around much longer.
Nvision is a pre-approved 203K Consultant. A 203K Consultant prepares a cost estimate on the house for approval by the lender as part of the HUD 203K Loan Program. We also prepare the necessary documentation (with your signature) at the completion of the project to satisfy the bank that the work has been completed to everyone's satisfaction.
Nvision Construction can complete the scope of work. AND if we are hired to do the work that we prepared as the 203K Consultant, we will proceed with the work as a fixed price contract, with one year warranty on all parts and labor (or longer for applicable manufacturers warranty).
Are you ready to start the process or want to learn more? Interested in learning more about purchasing short sales or REO? Contact us by email, or enter your information and comments online, or call us (407) 872 1900.
For more information about the HUD FHA 203K Loan Program process, go to our203k loan process page.
