I know 203k is for investors who wants to purchase and rehab to live in the property. Is there a minimum timeline restricts the owner to hold the house in order to re-sell the property?
Can 203K be refinanced out to a different loan program?
The 203K is not for investors. It is for owner-occupants. There is no minimum time that you have to hold the house before it can be resold, but if your buyer plans to use FHA financing to purchase the home you will need to hold it for at least 90 days.
Also the 203K can be refinanced into a conventional loan.
here’s what I don’t get regarding the 203K program.
Directly from the FAQ on HUD site (http://www.hud.gov/offices/hsg/sfh/203k/faqs203k.cfm):
-
Can an investor use the 203(k) program? No. In October, 1996, the Department placed a moratorium on investor participation in the 203(k) Rehabilitation Mortgage Program.
-
Is there a limitation on how many properties a person or organization can have in any area of the community? Yes. A borrower can have not more than seven (7) units within a two block radius of the property they want to purchase. However, if the property is in a local community area that has been designated for redevelopment or revitalization, then this seven unit limitation does not apply.
Who else beyond an investor would question 33 be relevant for ??