Property Q&A in Bridgeport>Question Details

Dan, Other/Just Looking in 06812

the price is $85,900...What does fha 203k or cash offers mean than?

Asked by Dan, 06812 Tue Nov 17, 2009

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Well going off what you posted I am assuming that the property that you have looked at is listed for sale for $85,900 and states that FHA 203k or cash offers are needed.
What that means is the property is obviously in need of some repairs. That being the case conventional financing would not be an option.
The only two options you would have as a buyer would be to pay cash for the property or FHA has what is called a 203k loan. It allows you to purchase the home and make the necessary improvements or repairs to the home. The 203k loan allows you to finance both the purchase price as well as the cost of the necessary repairs.
0 votes Thank Flag Link Tue Nov 17, 2009
Hi Dan,

An FHA203 loan allows the borrower to wrap repair/construction costs into the primary loan. The Streamline version is for repairs under $35,000 that do not involve any kind of structural renovations. For these, the lender may release 35-50% upfront and 50% when the work is completed. The lender will require a final inspection to make sure the work is complete.

For loans exceeding $35,000 in repairs, the process becomes slightly more intricate. You will want to involve a 203(k) consultant. The Consultants role is clearly defined at the initial consultation. Obviously, the process can vary from loan to loan and the need to retain an Architect or Engineer could arise depending on the complexity of the project. The 203(k) consultant will work with all parties involved with the project

And cash is... cash.

Let me know if there's anything else I can help you with.
0 votes Thank Flag Link Tue Nov 17, 2009
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