The FHA 203(k) program can be used to accomplish rehabilitation and/or improvement of an existing one-to-four unit dwelling in one of the following ways:
Â· To purchase a dwelling and the land on which the dwelling is located and rehabilitate it.
Â· To purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and rehabilitate it.
Â· To refinance existing indebtedness and rehabilitate a dwelling;
To purchase a dwelling and the land on which the dwelling is located and rehabilitate it, and to refinance existing indebtedness and rehabilitate such a dwelling, the mortgage must be a first lien on the property and the loan proceeds (other than rehabilitation funds) must be available before the rehabilitation begins.
To purchase a dwelling on another site, move it onto a new foundation and rehabilitate it, the mortgage must be a first lien on the property; however, loan proceeds for the moving of the house cannot be made available until the unit is attached to the new foundation.
In order to discuss in further detail, the particular circumstances of your situation, I suggest you contact a direct FHA lender. I can provide you with a referral to an excellent young man I do business with on a regular basis, in fact, he is the dedicated representative for my company at the lender. His contact info is as follows:
Mr. Houtan Hormozian
American Guardian Home Loans
Good Luck and Happy Hunting!!!
Keller Williams Wilshire
The City of Los Angeles Housing Department (LAHD) will offer purchase assistance financing to eligible low- and moderate-income homebuyers seeking to purchase a foreclosed home in an NSP Priority Area in the City of Los Angeles. LAHD provides assistance in the form of a deferred loan for purchase assistance (down payment and closing costs) and rehabilitation funds (if the property requires repairs).
More info you can email or call me
Good luck to you.
Sure you can use an FHA 203K loan to purchase a forelosure or other property. The key is to find an experience lender who has done enough of these loans to do a good job. I have a couple of lenders I'm happy to refer to you and I just wrote an offer on a foreclosure with this exact loan.
Keller Williams Realty
The 203(b) loan is the "standard" FHA loan everyone knows and loves. It can also be used on a foreclosure, provided the property is currently safe and liveable.
In fact, if you buy a HUD home, you can finance it with either FHA 203(b) or 203(k) and just a $100 down payment.