The FHA 203(k) rehab financing follows the same general guidelines as the regular FHA 203(b) loan.
Here are a couple of program characteristics that apply to the FHA 203(k) loan:
· allows the borrower to finance up to $35,000 for repairs
· can be used with the $100 down HUD REO property
· the repairs can be completed after closing
· the loan must have an automated underwriting approval
· the credit eligibility is the same as other FHA programs
· Cash out refinance is are not allowed
· one time closing
· rehabilitation funds escrowed by lender and disbursed as work is completed
· can be used to update the home, correct health and safety issues, or pay for high-cost items such as roofing, flooring, HVAC, or appliances
Here is a link for additional information on the FHA 203(k) loan program:
For more information about this financing program please give me a call.
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The opinions and general information in this blog are soley those of Kathy Sheehan. Specifics regarding an individual case should be discussed in detail with a loan professional. For a confidential consultation, please feel free to contact me via phone or email. All terms and conditions are subject to change.