Jersey City, NJ · Member since 2012 · 127 posts · 10 votes
Does anyone know if it is possible to buy land and build a house using a 203k rehab loan? In other words, the loan would be based on the full cost of the land PLUS the house?
Thanks
Wholesaler · Newark, DE · Member since 2011 · 50 posts · 4 votes
13y
It would not be a 203K from what I've read you would do FHA construciton to Perm.
they will roll all costs into the loan and it is still only 3.5% down I think.
problem I have run into is they are only doing it on manufactured or prefab. you can't get the loan to do a stick built home on it.
I was looking at doing this on a lot I have in Philly, do a 4 plex and move in. but there are not a lot of people who do the laons. Google it and start looking for "FHA construction to perm"
the 203k is a rehab loan, which means that if you are building a new home, there's actually nothing to rehab. The 203k cannot be used to build a new home, but it can be used to move an existing home to your new land location.