Home Buying in Chicago>Question Details

Johnmart14, Home Buyer in Skokie, IL

Buy short sale using 203k loan?

Asked by Johnmart14, Skokie, IL Mon Aug 5, 2013

Is it possible to buy a house in a short sale using 203k loan? I saw a townhouse on short sale for 40k and it needs a renovation.

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Fannie Mae offers buyers a homepath renovation loan similar to a FHA-203k loan but this is for bank owned properties not short sakes. I beg to differ with these mortgage brokers. These loans are complicated and require a good loan officer but not with a short sale. Remember there is a seller in this transaction and they want to be forgiven of the debt and make sure the deal closes. The more complicated the loan and transaction the less likely it will close. Best advise if you need a rehab loan then find another property or close conventionally and get another rehab loan after closing
1 vote Thank Flag Link Mon Aug 5, 2013
Yes, this is possible - Get yourself pre-approved from a lender.
Web Reference: http://www.BJDLOANS.com
0 votes Thank Flag Link Wed Aug 7, 2013
Yes, you can utilize an FHA 203K loan on a short sale property. I would speak with your loan officer about getting all necessary documents in line, and having a licensed contractor lined up to bid the work you would like to do.
0 votes Thank Flag Link Tue Aug 6, 2013
email me at jmichaels@remax.net and I will send you the contact for the 203k
0 votes Thank Flag Link Tue Aug 6, 2013
Yes, it is possible, I have worked on these types of transactions. They are not simple but doable.

Let me know if I can be of further assistance and definitely call Sam Sharpe for the 203k. Guaranteed Rate has an amazing 203k loan specialist and a department completely dedicated to these loans.
0 votes Thank Flag Link Tue Aug 6, 2013

If it can be done Sam Sharp is your guy.
0 votes Thank Flag Link Tue Aug 6, 2013
It is possible. Speak to your lender and they can help you out.
0 votes Thank Flag Link Mon Aug 5, 2013
It is possible - and this can be a great option. I would be happy to answer any questions that you have. Please feel free to contact me
Sam Sharp
Senior VP of Mortgage
Guaranteed Rate
0 votes Thank Flag Link Mon Aug 5, 2013
Anything is possible but not practical. With a short sale you are buying As is condition and with a 203k loan you are buying with improved value. Short sale bank does not care about your improvements.

Jack Lewitz
SFR certified
Five star red book REO certified
0 votes Thank Flag Link Mon Aug 5, 2013
I have successfully closed 203k loans and conventional renovation loans on foreclosure properties. I would recommend finding a great and knowledgable real estate agent to guide you through the process. If you would like more detail on either loan program please contact me directly.
Jim Pontious
PHH Home Loans
NMLS 201084
0 votes Thank Flag Link Mon Aug 5, 2013
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