Foreclosure in 19136>Question Details

Edtheia Moses, Home Buyer in Philadelphia, PA

What is the 203k loan and can I use it on a forclosed "AS IS" property?

Asked by Edtheia Moses, Philadelphia, PA Wed Jan 25, 2012

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Good Morning Edtheia,

How are you? Thank you for your inquiry. 203K is a renovation FHA loan that you can use to purchase a somewhat out of shape home and have a licensed and participating contractor to do the work for you as part of the mortgage package. And yes, you could use this type of loan on a foreclosure property if needed. "AS IS" on a property listing only means the bank is not fixing anything and selling in whatever the current condition of the property is.

If you have any questions, please feel free to email me at Phong.Lam@c21ag.com or call me at (267) 918-1880 and I'll be more than happy to explain everything in details for you.

Thank you for your time and have a wonderful day!

Hope that helps!

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Best Regards,
Phong Lam, CSM
REALTOR®
CENTURY 21 Advantage Gold
2010 Oregon Avenue
Philadelphia, PA 19145
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0 votes Thank Flag Link Wed Jan 25, 2012
Hello Edtheria,

A 203k loan can be used to finance the purchase of a property and the cost of construction to bring the property into liveable condition or better. A 203k loan can be used to pirchase a foreclosure and is often necessary to get financing as most lenders will not finance a house that has health or safety hazards.
A 203k loan can be used to finance everything except swimnming pools or major structural damage
You can get more information at my website see below and click on the link at the bottom of the page).

A 203k loan carries a slightly higher rate than a regular FHA 203B loan and the closing costs can be approx $1,000 to $2,000 higher for inspection fees, title bring downs and consultant fees as wellas a mandatory supplemental origination fee. These are all worked into the cost of the loan and the required downpayment for the buyer is still the minimum 3.5%.

Please call me if you have any other questions.

Regards,
Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
NMLS ID 143960
0 votes Thank Flag Link Wed Jan 25, 2012
You can use a 203K loan on a REO or pre foreclosure property. 203K is an FHA loan that builds in renovation costs, some closing costs and acquisition. This is a great way to find and renovate the home to
your taste. It takes some extra work, but worth is in the end.

Kindest Regards,

Michael P. Cohen ABR ASR, BPOR
Associate Broker
RE/MAX Access
1033 N. 2nd Street 5Th Floor
Philadelphia, PA 19123
Direct Line: 610-642-0347
Office: 215-400-2615
Greenfax: 610-680-3688
Cell: 610-331-7213
mskj@comcast.net
http://www.phillyreo.com
Web Reference: http://www.phillyreo.com
0 votes Thank Flag Link Wed Jan 25, 2012
203k loan at least in Georgia allows for rehab funds, if the property qualifies for rehab repair. The repair amount is added into the loan. I have done loans like this through HUD. HUD allows you to bid on certain properties that qualify for 203k loan. If you make an offer to an agent on one of their (regular) foreclosure listings it would depend on the status of the listing, the lender and some other factors to possibly get an agent to accept a 203k loan, mainly because they take a little longer to close than your traditional loans.
0 votes Thank Flag Link Wed Jan 25, 2012
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