Home Selling in 94612>Question Details

H, Home Buyer in Coral Gables, FL

If I purchase a home with a 203K rehab mortgage...is there any restrictions on selling it?

Asked by H, Coral Gables, FL Wed Oct 29, 2008

I am considered purchasing a purchase and securing a 203K loan. When I am ready to sell the home, are there any restrictions, i.e. including time I have to hold the property, amount of gain realized, etc?

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I believe for any FHA loan, the homeowner needs to live in it for at least 1 year.
0 votes Thank Flag Link Sun Mar 23, 2014
Tara-Nicholle is right, but there are also other programs to finance home rehabilitation. The key in any case is being prepared with details of what you plan to do and, of course, a budget. Unless you plan to hold onto the property for one year or more, your problem may be finding buyers who can get financing as the home's value for mortgage purposes would pretty much held to the sale price for 12 months.
0 votes Thank Flag Link Thu Oct 30, 2008
I do not believe there are restrictions, however the HUD guidelines were changed about twelve years ago to prohibit investors from participating in 203K - it is only for owner-occupants or non-profits.

Hope that helps - here's a link with more info:

http://www.hud.gov/offices/hsg/sfh/203k/faqs203k.cfm
0 votes Thank Flag Link Wed Oct 29, 2008
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