Banktown Foreclosures

How the FHA 203k Program Can Be Used:

The 203k program can be used to accomplish rehabilitation and/or improvement of an existing one-to-four unit dwelling in one of three ways:

	To purchase a dwelling and the land on which the dwelling is located and rehabilitate it.
	To purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and rehabilitate it.
	To refinance existing liens secured against the subject property and rehabilitate such a dwelling.

Many foreclosure properties in the Charlotte market qualify for FHA backed 203k rehab loans. These loans allow owner occupants to purchase properties with renovation funds set aside for improvements and construction. FHA approved consultants and general contractors are required. FHA does not loan money, but most lenders can provide this government backed loan for owner occupants through the normal loan process.

One advantage to this type of loan is the AS COMPLETE value of the home is used for the purposes of the loan amount. For more information see the outline below and the link to the HUD website.

We can help you find 203k qualified properties and have contacts for FHA consultants, contractors and lenders.

Scott@SouthendCharlotte.com

(704) 906-1645

Rehab a Home w/HUD's 203(k)

For more info visit the HUD link: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou

The Federal Housing Administration (FHA), which is part of the Department of Housing & Urban Development (HUD), administers various single family mortgage insurance programs. These programs operate through FHA approved lending institutions which submit applications to have the property appraised and have the buyer's credit approved. These lenders fund the mortgage loans which the Department insures. HUD does not make direct loans to help people buy homes.

The Section 203(k) program is the Department's primary program for the rehabilitation and repair of single family properties. It is an important tool for community & neighborhood revitalization and for expanding homeownership opportunities. Since these are the primary goals of HUD, the Department believes that Section 203(k) is an important program and we intend to continue to strongly support the program and the lenders that participate in it.

Many lenders have successfully used the Section 203(k) program in partnership with state and local housing agencies and nonprofit organizations to rehabilitate properties. These lenders, along with state and local government agencies, have found ways to combine Section 203(k) with other financial resources, such as HUD's HOME, HOPE, and Community Development Block Grant Programs, to assist borrowers. Several state housing finance agencies have designed programs, specifically for use with Section 203(k) and some lenders have also used the expertise of local housing agencies and nonprofit organizations to help manage the rehabilitation processing.

The Department also believes that the Section 203(k) program is an excellent means for lenders to demonstrate their commitment to lending in lower income communities and to help meet their responsibilities under the Community Reinvestment Act (CRA). HUD is committed to increasing homeownership opportunities for families in these communities and Section 203(k) is an excellent product for use with CRA-type lending programs.

If you have questions about the 203(k) program or are interested in getting a 203(k) insured mortgage loan, we suggest that you get in touch with an FHA-approved lender in your area or the Homeownership Center in your area.