203k Inspections

WHAT IS A 203 (k) LOAN?
The 203(k) loan is a fully disbursed loan which allows a borrower to purchase or refinance a property and finance the cost of rehabilitation with one loan. Because it is fully disbursed at closing, the 203(k) loan can be insured by HUD as soon as the loan closes. The mortgage amount for these loans is based on the projected value of the propertywith the work completed, taking into account the cost of the work. HUD has taken a strong position to encourage this program and the loan is now easier to originate and close than ever before.

Advantages

  • Up-front MIP can be financed
  • Non-profit organizations are eligible with only 5% down payment
  • and can buy multiple properties
  • Finance up to 6 months mortgage payments
  • Special HUD down payment programs
  • Most closing costs can be financed
  • An FHA loan is assumable


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