The FHA 203K Mortgage is product design for the purchase of HUD homes. Up to $35,000 can be borrowed (on top of FHA loan amount) to rehab a HUD home. There are, of course, a long list of guidelines, it is after all a government insured loan, but all things considered what a great program for first time home buyer!
10 Point Overview of the 203K Guidelines
* For use on purchase of HUD homes only
*dwelling must be owner occupied
*must be an FHA borrower
*re-hab costs MUST exceed $5,000
*can be used on multi-families up to 4 units (must be owner occupied)
*Borrower is allowed to do some of their own improvements
*Borrower can finance up to 6 months of mortgage payments with it (ideal if you have to pay a mortgage or cover rent during rehab)
*Takes up to 60 days to close
* Funds will be placed in escrow at closing and released at the time of work to the contractor a 10% draw is held back to insure completion of the work
* Left over escrow funds will be used to reduce the principle amount of the FHA 203K mortgage
Contact Anne Marie-McKenzie & Associates Today to View a List of Current HUD Foreclosed Homes for Sale
to learn more about HUD foreclosed homes visit the HUD Home Expert .
Allen & Selig Realty
1 Walnut Common
North Yarmouth, ME
04097
207-829-3339 x 111
ammckenzie@maine.rr.com
www.mainerealestateresource.com
