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If you are looking for information on 203K home loans then you have found your resource!
Veracity Real Estate is proud to have 2 203K specialists on board. If you are looking to buy a great deal and add the finishing touches to make it your own a 203K loan could be the perfect loan for you. Here are some blogs we have created about 203K home loans.
If you would like more information about a 203K loan or would like to know how to get the process started, call Dawn Workman with Veracity Real Estate Group. She is a 203K Specialist and is able to help you with the entire process.
Dawn Workman, MBA, Realtor, 203K Specialist
480-540-8100
See all the Phoenix, AZ area foreclosures here!
What makes a house qualify for a 203K loan?
Keep in mind you can not get a 203K loan on an investment property, it must be for your primary residence. So the first rule of thumb is it must be a home you would like to live in.
Guidelines are not based on how much work a home needs or doesn't need but more so based on what type of property it is. You can get a 203K loan on a single family home, duplex, triplex or even a fourplex as long as you are going to live in one of the units.
Guidelines also include financing on mixed use properties with commercial and residential both used in a particular building.
Individual condo units are able to receive 203K financing as well.
The Department of Housing and Urban Development (HUD) says, to be eligible, the property must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to the provisions of local zoning requirements. All newly constructed units must be attached to the existing dwelling. Cooperative units are not eligible.
Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place.
In addition to typical home rehabilitation projects, this program can be used to convert a one-family dwelling to a two-, three-, or four-family dwelling. An existing multi-unit dwelling could be decreased to a one- to four-family unit.
An existing house (or modular unit) on another site can be moved onto the mortgaged property; however, release of loan proceeds for the existing structure on the non-mortgaged property is not allowed until the new foundation has been properly inspected and the dwelling has been properly placed and secured to the new foundation.
A 203(k) mortgage may be originated on a "mixed use" residential property provided: (1) The property has no greater than 25 percent (for a one story building); 33 percent (for a three story building); and 49 percent (for a two story building) of its floor area used for commercial (storefront) purposes; (2) the commercial use will not affect the health and safety of the occupants of the residential property; and (3) the rehabilitation funds will only be used for the residential functions of the dwelling and areas used to access the residential part of the property.
Simply put, if you are planning on living in your new home and it has less than four units it probably will qualify for a 203K home loan.
If you would like more information about a 203K loan or would like to know how to get the process started, call Dawn Workman with Veracity Real Estate Group. She is a 203K Specialist and is able to help you with the entire process.
Dawn Workman, MBA, Realtor, 203K Specialist
480-540-8100
See all the Phoenix, AZ area foreclosures here!
Ready to own your dream home? But your dream homes is currently less than dreamy? Thinking 203K loan? Think 203K loan!
The 203K loan which was created by the US Government to help home owners buy a home with little money down while financing enough money to rehab and improve the home, is a great opportunity for many today. 
A 203K loan is a type of a FHA home loan. Currently the down payment required for a FHA loan is only 3.5% and that money can even be gifted.
The difference between a standard FHA loan and a 203K home loan is that with the 203K loan the home owner is able to obtain financing on qualified repairs. At the time of the loan it is determined what improvements the home is going to receive and who is going to do the work. The value of the home after the repairs is also determined, making is so the home owner can have the exact home of their dreams for only 3.5% down payment.
The Department of Housing and Urban Development (HUD) says, Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made.
When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan.
If you would like more information about a 203K loan or would like to know how to get the process started, call Dawn Workman with Veracity Real Estate Group. She is a 203K Specialist and is able to help you with the entire process.
Dawn Workman, MBA, Realtor, 203K Specialist
480-540-8100
See all the Phoenix, AZ area foreclosures here!
What is a 203K loan?
Looking to buy a foreclosure or home that needs a lot of "love" before your family can actually call it home? Want to have a low down payment and be able to update and repair your soon-to-be new home without having to save for years? Want to make sure all the honey-do items on your home get done right away and professionally without havint to pay for them all right now?
Then a 203K loan may be right for you!
Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), makes it affordable to buy a home with a FHA home loan, which most people know about. But they also have the Section 203(k) program, which most people don't know about. According to the HUD website, The Section 203(k) program is the Department's primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and 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.
Simply put- for 3.5% down payment, you can get a home loan to include the rehab of your primary residence, and that loan is even back by the US government!
If you would like more information about a 203K loan or would like to know how to get the process started, call Dawn Workman with Veracity Real Estate Group. She is a 203K Specialist and is able to help you with the entire process.
Dawn Workman, MBA, Realtor, 203K Specialist
480-540-8100
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Looking for a HARD-WORKING Realtor in AZ with HIGH INTEGRITY and MORALS? Then your search is over! Dawn has an AGGRESSIVE MARKETING PLAN and her concern for finding you the PERFECT home is GENUINE!
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