I was doing some reading and came across this type of FHA loan. It is for homebuyers who want to rehab and you can combing purchace price and renovation costs in one mortgage. Can investors use this loan or is it only for first time homebuyers that plan on occupying the home. Anyone had experience with this?
FHA 203K loans are only for owner occupied primary residences. They allow you to borrower up to the FHA maximum housing guidelines per county. It allows you to finance the purchase price of the home plus the costs to rehab the home as well as 6 months worth of PITI (fully escrowed mortgage payments Principal Interest Taxes and Insurance)
However, there are 203K loans outside of the FHA umbrella, as well as rehab loans for persons who are not certified contractors.
Dr. Dawn
DR. Dawn,
I would prefer not to email at this time. Could you give me some info on this forum?
the FHA 203k is a FHA product for rehabbing and renovation. The conventional market has mirrored the governments product and calls a Fannie Mae Homestyle Renovation Loan.
Anything from rehabbing a home, adding an additional room, to installing a swimming pool.
Very few loan officers know how to put this together properly.
contact me for more information.
Thanks, is this for investors or owner occupied? Gracie