Best of Luck!
Here are more details on that:
This program can be utilized for accomplishing rehabilitation and/or improvement of an existing one-to-four unit dwelling in one of three ways: http://fha203kloan.org/203k-eligible
>By purchasing a house and the land on which the house is located and rehabilitate it.
>By purchasing a house on another site, move it onto a new foundation on the mortgaged property and rehabilitate it.
>To refinance existing indebtedness and rehabilitate a house.
This shortens the closing time by weeks. Try http://www.cfs-mortgage.com/203k for more information.
With a 203(k) loan not only does the borrower need to be qualified, the contractor must also be approved. Then after that, the plans need to be approved, and if the scope of work is large or over about $30,000 in rehab cost you will usually need to use the full 203(k) loan (as opposed to the streamline version that is more widely offered) and that involves a special consultant approved by FHA. This is where I see the most problems during the transaction. I really donâ€™t recommend having that relative with a contractorâ€™s license do this unless they are familiar with the loan product. I have a couple of contractors that are very good contractors, but more importantly they understand this loan program so the process goers very smooth.
I really like the 203(k) loan; I believe more people should be taking advantage of it. The one thing I would really stress though is make sure you donâ€™t pay too much for the as-is property. When I see these deals go bad itâ€™s almost always because the math doesnâ€™t work. If you pay $100,000 for a property in as-is condition and then spend $30,000 on repairs, it should now be worth $130,000 or more. Itâ€™s very frustrating to pay for an appraisal and more only to find that the property will only be worth $120,000 after the repairs are complete.
Best of luck with your home search up at Tahoe.
All loans require justification these days. Remember, there are no investor 203K loans anymore. FHA borrowers must be owner occupants.