Is doing a 203(k) the only way I can finance a foreclosure house?

Asked by Amber Singer, Astoria, Queens, NY Thu Feb 28, 2013

Help the community by answering this question:

+ web reference
Web reference:

Answers

4
Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Thu Feb 28, 2013
BEST ANSWER
No it's not necessary, it depends on the condition of the property. If the property is on livable conditions or has very little damage (hole in a wall, missing stove, missing light fixture, etc) you'll be able to finance with a non-203(k) loan. If there's extensive damage, you'll need a 203(k). Consult a Loan Officer.

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
3 votes
Maureen Mizu…, Agent, Ozone Park, NY
Sun Mar 3, 2013
It is not the financial status of the property that determines how to finance the purchase of the property. Rather, the physical condition of the property that determines the financing of the purchase.
if you are paying cash then a professional inspection of the property is all you need. Professional investors have other means to proceed when determining whether to purchase a forclosure or any other property for that matter.
Getting back to your question. In order to get a non 203 mortgage to purchase a forclosure or any other home it has to meet certain physical criteria, for example the roof cannot leak, the plumbing must be in working order, the heating system must be in working order,the house must be free from mold.If the property doesn't fit this criteria than a 203 mortgage is appropriate.
Under 35K of work to be done a 203b mortgage is used. Over 35K of work a 203k mortgage is used. There is a lot more info to review. Not every bank can do 203's and not every contractor can work with these programs. I have several banks and contractors I work with that are leaders in the field. I would love to work with you and help you Amber. Give me a call.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Thu Feb 28, 2013
Without much information as to the extent of necessary repairs, discuss with your loan officer....
0 votes
Maria Gilda…, Agent, Manchester, CT
Thu Feb 28, 2013
It depends on the condition of the house. The first barometer to determine if it needs 203K loan is that the house is not habitable in its current condition.

The obvious problems or issues are leaking roof, missing plumbing, non-working mechanicals such as boiler/furnace, broken windows, structural issues, mold. etc.

Having said this, not all foreclosed homes are not habitable. I just pointed out the obvious.
I hope this helps.

Best.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more