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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Erica Anders…, Agent, Holly Springs, NC
Sun Mar 23, 2014
I believe for any FHA loan, the homeowner needs to live in it for at least 1 year.
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..., , Lexington, MA
Thu Oct 30, 2008
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.
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Tara-Nicholle…, Agent, Alameda, CA
Wed Oct 29, 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
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