Can anyone explain this…
203 KS is an FHA loan which allows you to escrow for repairs.
Thanks!
from what I have read it is for owner occupied purchases.
Quote from bankrate.com:
http://www.bankrate.com/brm/news/mtg/19990128.asp
It allows people to rehabilitate homes by obtaining a mortgage that covers the purchase price of a property, the cost of renovating it and the monthly mortgage payments due before move-in day.
It’s called the 203K streamline loan.
The benefits of using this loan is that a buyer can buy a home that needs a little bit of updating and finance the cost of any repairs and updates in with their mortgage. This loan can only be used for properties that are going to be owner occupied either single family or 2-4 units. The minimum amount of repairs/updates required to use this loan is $5,000. Some repairs that are eligible with the 203K loan include: roofs, gutters, downspouts, HVAC systems, replacement flooring/carpet, minor remodeling such as kitchens, baths, painting, appliances, handicapped accessibility, basement refinishing. Yes, a buyer can even purchase new appliances! All work must be completed by licensed contractors.
This is a great new loan product for buyers.