The 203k program has been around a long time. The issue has been finding lenders that handled the program. The loan program is more time consuming and limited lender either offer the program or wish to offer the program. Currently ,at least in the milwaukee area, the lenders that offer the program are the larger loan servicing companies. It is best to get preapproved by the lender before you make your offer. This way you understand the program and the amount your pre approved. The agents that should understand these loans are buyer agents that work in the foreclosure market.

Good luck


Keith Manson
First Weber Group
Crtified Distressed Property Expert
Greenfield,Wisconsin

A good foreclosure realtor is essential to sucessfully buying a foreclosure, banks will not agree to an offer unless the financing is right. If you would like to discuss the 203k program give me a call, i have actually done 7 in the past year. Brian 610-529-5732 cell

FHA 203k were introduced in 1978 by a revision of the National Housing Act (NHA). They grew out of favor in the rising housing market with the availability of HELOC's and second mortgages.
Since the Mortgage Meltdown, the slowdown in new construction and the disappearance of second mortgage liens (like HELOCS) , FHA 203K loans are making a comeback in a big way and are a great tool to accomplish your renovation goals.
203K loans are based on after repair value and includes an escrow account to complete the repairs needed to bring the house to a condition that lenders prefer.The current condition of the property is not as important as the condition of the property once the renovation is complete. This provides an outlet to purchase dilapidated properties, and solves the problem that most lenders face when dealing with property in disrepair. What this means to the home buyer is generally a significant discount to "as-is" value and, quite often, a super deal on a house.
FHA 203K renovation loans are used in three different ways:

1. To purchase an existing home (and the land attached to that home) to renovate it.
2. To payoff existing debt on a current residence and renovate it
3. To purchase an existing home with the intent to move it to a new piece of land in a more preferred location.

IMHO, a Realtor should know someone that knows something about FHA 203k.

It has been around for some time now and a good realtor should be familar about all types of loans other than just "call a loan officer to find out about financing".



Sean Dawes

I am not sure how long this loan has been in existence, but I do know that there has been some type of loan to help people fix a home to be able to live in. Not necessarily through FHA and not always without gaps. Meaning there could have been some short spans of time where this was not available.

I don't know why you ask how long this has been in place because that really isn't important. The only thing that is important is that the program is currently in place.

You also ask whether a Realtor should know about these programs. Well, it would be in their best interest to know what kind of programs are available for their clients. However, with that being said, who is the loan expert, the real estate agent or the mortgage loan broker? The loan broker, right? And this is where the importance of getting a hold of a mortgage lender FIRST is of utmost importance. This way, you will be informed as old programs disappear and new ones come in.

Hope that helps,

Terrence Charest, e-Pro