Updated about 13 years ago on . Most recent reply
203k loan
The FHA 203-k loan program can be used to purchase properties in run down condition. The nice thing about this program is that instead of having to pay closing costs twice, (i.e. for a conventional loan and also for a home improvement loan) the 203-k will fund the purchase money loan and also an escrow account which will be setup for the payment of the construction work. You will have 6 months generally after the funding to complete the work. This is a great loan for those in the rehab business to get a property for a very low downpayment and get the money to complete the work. The program can be used for adding rooms, a new roof, fixup work, etc.
The program can also be used for units.