Financing in 11756>Question Details

Craig, Home Buyer in Suffolk County, NY

just curious...is a 203K reflected in sales price?

Asked by Craig, Suffolk County, NY Fri Jan 7, 2011

Is a 203K reflected in the sales price? for instance, if i buy a house for $60K and get a 203K loan for $30K is the sales recorded as$60K or $90K ? thanks!

0 votes Share Flag Financing in 11756

Help the community by answering this question:

Answers

6
Robert Brubaker’s answer
Craig- A 203 K loan takes the Acquisition and Fix-up Costs totaled together minus
your down-payment to arrive at the loan amount to be considered. In the case you
mention: Acquisition cost is $ 60,000. That's what you are paying the seller , thats
the purchase price of the house, and so recorded. You may want to put a contingency
in your purchase offer that you must be able to secure the added fix -up funding.

The Program requires a second appraisal for "after fix - up value " . There are limits to
the amount you can finance for repairs related to the 2nd appraisal value. You must
qualify, the specified repairs must be priced at standard cost, and sufficient to bring
the house up to FHA property standards and local building codes.
There are " HUD CERTIFIED " 203K consultants that you can employ to help on
the fix-up end. The lender may require one. The Bank or the Sales agent should be
able to refer you . Good Luck! 203 k is involved , but a great program!



Bob Brubaker Highlight Realty West Palm Beach, FL.
.
1 vote Thank Flag Link Fri Jan 7, 2011
The $60K would be the sales price because that is what the seller gets and has nothing to do with the borrowed amount.
0 votes Thank Flag Link Fri Jan 7, 2011
Whatever is on the purchase contract is the sales price of record.
0 votes Thank Flag Link Fri Jan 7, 2011
Keep in mind that the rehabilitation funds get escrowed and are disbursed as the work is
satisfactorily completed, therefore the 60K should be recorded--what is your loan officer and or agent advising....
0 votes Thank Flag Link Fri Jan 7, 2011
I was referring to a '203K rehab loan' so my mtge and renovation costs would be $90K, but the proceeds to the seller would be $60K so which is considered the sales price $60K or $90K. Ths!
0 votes Thank Flag Link Fri Jan 7, 2011
Sorry,

You question is confusing. If you by a home for $60,000, why would you get a loan for 203K?
0 votes Thank Flag Link Fri Jan 7, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer