Buying a foreclosed or bank-owned home might require minor, or even major repairs.  A 203K loan could be the answer to getting the money you need to get the job done.  Here are some frequenlty asked questions.

Q:  Can I use this loan on a home that was built in 1934 and needs major upgrades?

A:  Yes, the 203K program allows for major upgrades and repairs.

Q:  Can the home be torn down to the foundation and redone completely?

A:  Yes, on a Standard 203K, a home can be torn down, however part of the existig foundation must remain. 

Q:  What is the maximum acreage that can be included in a 203K loan?

A:  FHA doesn’t have a max acreage, but the lender might have some additiional conditions.

Q:  If the borrower needs additional funds for completion of new construction, can a Standard 203K loan be used?

A:  New construction is not allowed under the 203K program.  Eligible properties must be at least 1 year old.

Q:  Can I use this type of loan to remediate on a home I’m buying that has mold?

A:  Yes.  The location of the mold and type of repairs to remedy determines if the loan will be structured as a Standard 203K

      or Streamlined 203K loan. 

If you have more questions about a 203K loan, feel free to email me at tanya@crownmarkgroup.com.

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