How much are you required to put down on a 203k loan? Is it the 3.5% of the purchase price of the home or the

Asked by S.c., Chicago, IL Mon Apr 27, 2009

purchase price plus the rehab loan (total of the loan)?

Help the community by answering this question:

+ web reference
Web reference:

Answers

5
Kurt Clements, Agent, Schaumburg, IL
Mon Apr 27, 2009
S.C.

The dollar amount? As long as the purchase price plus the rehab price is still less than 96.5% of the value of the property after the work is done, you are ok. For example, let's say the purchase price is $150,000 and if you put $50,000 of work into the home, the home would have an appraisal value of $210,000 then you would be ok. If however the purchase price of the home is $150,000 and you put $50,000 of work into the home and the appraisal value was only $190,000 then it wouldn't fly. You would need to get another bid or lower the amount of work being done to the home. Does that answer your question?

Kurt Clements
Senior Vice President
GSF Mortgage
3933 75th St
Aurora, IL 60504

Office: 630.806.7016
Cell: 630.430.1091
Fax: 630.723.5233

kclements@gsf-mortgage.com http://www.gsfgovernmentloans.com
0 votes
Kurt Clements, Agent, Schaumburg, IL
Mon Apr 27, 2009
S.C.

The dollar amount? As long as the purchase price plus the rehab price is still less than 96.5% of the value of the property after the work is done, you are ok. For example, let's say the purchase price is $150,000 and if you put $50,000 of work into the home, the home would have an appraisal value of $210,000 then you would be ok. If however the purchase price of the home is $150,000 and you put $50,000 of work into the home and the appraisal value was only $190,000 then it wouldn't fly. You would need to get another bid or lower the amount of work being done to the home. Does that answer your question?

Kurt Clements
Senior Vice President
GSF Mortgage
3933 75th St
Aurora, IL 60504

Office: 630.806.7016
Cell: 630.430.1091
Fax: 630.723.5233

kclements@gsf-mortgage.com http://www.gsfgovernmentloans.com
0 votes
S.c., Home Buyer, Chicago, IL
Mon Apr 27, 2009
Does anyone know the limit of how much you can take out for the rehab loan?
0 votes
Kurt Clements, Agent, Schaumburg, IL
Mon Apr 27, 2009
S.C.

It is the purchase price plus the the rehab, then take 3.5% from that. Any other questions, just let me know.

Kurt Clements
Senior Vice President
GSF Mortgage
3933 75th St
Aurora, IL 60504

Office: 630.806.7016
Cell: 630.430.1091
Fax: 630.723.5233

kclements@gsf-mortgage.com
http://www.gsfgovernmentloans.com
0 votes
Phil Burnsti…, , Chicago, IL
Mon Apr 27, 2009
3.5% is the amount you put down on the total loan. Call Jaime Franz at A&N Mortgage. He is an expert on this type of loan. Please tell him I sent you.

Phil Burnstine
Broker Associate
Thornton Properties
phil@thorntonproperties.net
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more