Home Buying in New Orleans>Question Details

Shannon Wils…, Other/Just Looking in Gretna, LA

To get approved for a 203k differs from getting approved for other home loans?

Asked by Shannon Wilson, Gretna, LA Tue Apr 9, 2013

What qualifies for either (e.g. Credit, income). Also if the house I was trying to buy w/ 203k gets sold, can I buy another house with the loan?

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If the borrower is approved for traditional FHA loan, called FHA 203(b), then the borrower is qualified for the FHA 203k loan.

There are additional steps to getting a 203k closed such as contractor proposals, feasibility analysis (optional), Work Write-Up (performed by 203k Consultant) [needed on Standard 203k], etc.

But if you only submitted an offer to purchase a property where you were going to be using the 203k as your loan and your offer was not accepted, then you can submit another offer on another property using 203k as your financing method. You can repeat this process until you get an offer accepted.
Web Reference: http://203kContractors.com
0 votes Thank Flag Link Mon Apr 15, 2013
The requirements for a 203k loan are very similar as far as qualifications are concerned. However, the process is a little more involved. You will need to get quotes for all work to be done and make draws to pay contractors as the renovation work is completed. As far as using the money for another home you would want to check with your lender on that. Typically your lender is going go want to know what home the loan money is going to be used for ahead of time. Good luck with your project!
0 votes Thank Flag Link Fri Apr 12, 2013
Suzanns is right, 203k is an acquisition and renovation loan product, which alows you to buy the home and complete the repairs. I would recommend if you don't have a good Agent to hlep you with the process. I you choose this route interview a couple of Agents before hiring one.


Good luck

CCS Realty, LLC
504-304-2307
Licensed in the State of Louisiana
0 votes Thank Flag Link Thu Apr 11, 2013
The process is pretty much the same as any other loan but with an additional layer, you have to identify the repairs to be made, get a good cost estimate and identify a licensed contractor to oversee the work. Requirements as to credit and income do not change as far as I know and yes, if the home you were looking at gets sold you can use the loan for a different house.
0 votes Thank Flag Link Tue Apr 9, 2013
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