FHA Title 1and 203K rehabilitation loans - Posted by Perry K. Harris


#1

Posted by Phillip Le on February 23, 1999 at 15:11:14:

I used the 203K to fund the purchase and rehab of my current residence.

FHA has a web page with lists of local 203K approved lenders. I don’t know the address offhand, but I’m sure you can find it.

Paperwork is somewhat tedious, but I was able to buy a house for 66K + 45K in fixup using only about 7K in cash. Alot an extra month for paperwork vs. a “conventional” loan. Make sure that the lender does many of these, not just 1-2 per year. My deal was not no-money-down, but it was good enough for me (no previous real estate experience).

Phillip


#2

FHA Title 1and 203K rehabilitation loans - Posted by Perry K. Harris

Posted by Perry K. Harris on February 22, 1999 at 18:45:26:

Looking for success stories using Title 1’s and 203K’s. Ease of approval? Amount of paperwork? Upfront fees? Time until cash in hand? Lending institutions names? What part of the country is dominant in this? Out of state applications and the resrictions from lenders towards borrowers? FHA still insuring these types of loans? Bottom line: looking for rehab monies from my Uncle Sam. Central Illinois located.


#3

Re: FHA Title 1 loans - Posted by Dave T

Posted by Dave T on February 24, 1999 at 24:05:14:

FHA Title 1 is a home improvement loan up to $25,000 made by approved lenders and insured by the Federal Government. Started in 1934, Title 1 is FHA’s oldest housing insurance program. The loan terms are easier than would otherwise be possible with conventional financing. For example, unlike a conventional loan, Title 1 requires no home equity, and there is never a balloon payment.

In general a Title 1 borrower must own the property which is to be improved, have enough income to comfortably repay the loan, and have good credit.

With the Title 1 all proceeds must be invested in your home or rental property. Most improvements are pre-approved, including room additions, remodeling, paint, carpet, roofing, patios, landscaping, air conditioning, and many others. Title 1 does not allow a few luxury items such as a swimming pool or a spa.

You may do the work yourself or hire a contractor. With the Title 1, you will have several months to complete the job. The basic requirement is that any work done is in a satisfactory manner and all the loan money is spent on eligible improvements.


#4

Re: FHA Title 1and 203K rehabilitation loans - Posted by Rob FL

Posted by Rob FL on February 23, 1999 at 19:25:52:

FHA stopped loaning out 203k money to investors back I believe in 1997.