Home Buying in New Paltz>Question Details

Dereck, Home Buyer in Brooklyn, NY

Can someone help me with a 203k loan scenario?

Asked by Dereck, Brooklyn, NY Sat Aug 3, 2013

I'm looking at a property that will need some serious rehabilitation I'm not exactly sure what, but it's listed as a cash sale, and It's priced accordingly, but I don't have enough to purchase it in cash.

I've looked into 203k loans a bit but I'm a little confused. I worked as a contractor a number of years ago, but I don't currently have a licence. Lets say for argument sake that the property is 100k and needs 10k worth of work (If I do it all) or 30k worth of work if I hire someone.

Do I get a mortgage and a 203k loan?
Should I expect to pay a higher interest rate?
Can I get a 203k streamline and do the work my self?
If I can borrow enough from family and friends for the cash renivations can I then get a mortgage?

Any help is great

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Answers

2
Hello Sir/Ma,

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Danielgregloans@outlook.com
0 votes Thank Flag Link Tue Oct 1, 2013
Hi Dereck
The FHA 203k Rehab loan is a great product for buyers that are purchasing a property that will require work. There is one mortgage and one closing with the property appraised on the renovated value allowing the buyer to have the money available to complete the needed renovations.

The best thing to do would be to talk to your lender to see if your situation and the property qualify for the 203K program. Further information can be found on the HUD website below. As for borrowing from Family and friends before you do anything talk to your lender. There are restrictions on some loan products as to how much you can use as gifts, down payments,etc.

Another thing to ask your lender about is the USDA loan, where you can finance closing costs. Each individual has to be evaluated for the loan products the qualify for and each loan has it's own restrictions.

Good luck
Barbara Carter
http://www.newpaltzrealestate.com
Quinn Realty Group
0 votes Thank Flag Link Sat Aug 3, 2013
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