experience w/ HUD/NYS sec 203 rehabilitation loans

Brownstoner is your friend when it comes to 203K loans:

http://forum.brownstoner.com/question/sN3lUehp8mM=/recommending-203k-loan-officer
http://forum.brownstoner.com/question/9XeiEn2X444=/203k-renovation--general-contractor
http://forum.brownstoner.com/question/jX08bHz16Yc=/attorney-with-prior-203k-loan-experience

I can only post so many links because StreetEasy thinks I'm trying to spam, but if you search for "203K" you'll find plenty more threads over there.

flarf:

Thank you

rb345

what exactly are 203k loans? What are the salient requirements?

google is your friend.

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou

mym:

1. 203(k) refers to section 203(k) of some statute or regulation which is
part of the federal Housing and Urban Development Act, and its New York
State analogue

2. 203(k) loans provide financing for gut rehabilitations, and are available for
1-4 family homes and condos

3. their most salient feature is that the properties funded are valued for
appraisal and funding purposes at their after repair value

Good afternoon mym,

The FHA 203k Loan allows a Purchaser to buy a home and include renovation/repair costs in a SINGLE mortgage loan with a SINGLE monthly payment. At closing, the Seller of the house gets the Purchaser's down payment and the balance of the funds from the mortgage loan; the Purchaser gets the Deed to the house and the money needed for renovation/repair is deposited into a special "escrow" account with the Lender to be distributed as the renovation/repairs proceed based on a predetermined work schedule.

This is a great program, but it's awfully complicated and, unfortunately, not as many Lenders offer this loan in today's market. I've used this loan back in the 1990's to assist folks buying brownstones in Harlem that needed full gut renovation and conversion of the Certificates of Occupancy.

More about it here on my blog: http://www.tcurranmortgage.com/2009/04/02/the-miracle-rehabilitation-loan-known-as-the-fha-203k-loan/

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

*I post my full contact information because it's required by NYS regulations