Updated almost 10 years ago on . Most recent reply
203(k) Loan Question
If purchase a property with cash due to seller distress/quick sale and then attempt to utilize the 203(k) loan to rehab is it considered a cash out loan if you want to end up with less money down than you paid for it?
Ex. You buy a property for 50k with cash. Then you need to put 60k in the rehab with an ARV of 140k. Ideally one would like to end up with 22k down(20%). Will the bank allow a cash out for the 28k difference?
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Wayne Brooks
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Wayne Brooks#1 Foreclosures Contributor
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The 203k is for purchase and rehab, in one loan. You can do 3.5% down, purchase and rehab costs combined can't exceed appraisal of finished product. For owner occupants only.