Rehabilitation Mortgage 203k
This type of loan is structured to finance the rehabilitation or purchase to rehabilitate 1 to 4 family properties.
HUD insures the rehabilitation mortgages (203k) for up to 110% of appraised value after rehabilitation. HUD insures the rehabilitation mortgage up to 98% of the lesser of appraised value before rehabilitation, plus the costs to rehabilitate.
The loan can be used to :
- Finance rehabilitation of a existing property
- Finance the rehabilitation as well as the outside indebtedness of a property.
- Finance Purchase and rehabilitation of a property. The eligible rehabilitation loan must involve a principal obligation not exceed the amount allowed under Section 203b home mortgage insurance.
The eligibility for this type of loan is for Any person that can make the cash investment and mortgage payments.