203K Program - Posted by RB


#1

Posted by Jimbob on October 10, 1998 at 17:04:48:

It’s more trouble than it’s worth!

Seriously, it’s a program developed by HUD where a borrower can buy a fixer upper and also wrap the cost of fixing up the house into the new mortgage loan.

Sounds great huh? well there’s plenty of pitfalls, I know 4 investors that did it, and they swear they’ll never do it again, too many problems with qualifying like debt to income ratios, down payment based on purchase price or appraise dvalue before or after the house is fixed up, contractor certifications on the house every step of the way, Governemt red tape not releasing funds to continue fixup on time, and so on.

You’re much better off going with a lease/option or owner contract on a fixer, then fix it up, put it on the market and sell it, a lot less headaches and a lot more freedom to do what you want.

Jimbob


#2

203K Program - Posted by RB

Posted by RB on October 10, 1998 at 13:34:14:

What is Fha 203k program? thanks


#3

Re: 203K Program - Posted by charles (delaware)

Posted by charles (delaware) on October 13, 1998 at 18:39:06:

Go to Hud.com and look it up. I was interested in
but Clinton administration killed the investor
portion.

My experience and what I have heard is that the
program is not worth it. Too expensive due to fees
and time consuming due to redtape.

Suggestion. Go to a realtor who has some fixers uppers
listed and tell them you are interested in investing/
rehabbing and ask them what mortgage brokers
they use.

Good luck.