what is 203k program?
It has to do with financing and buying a house.
- 1 decade agoBest Answer
203k is an FHA program that comes with some construction/rehab funds at time of purchase. It allows you to buy a home and fix it up, without having to pay cash or have multiple lines of credit to pay for the repairs.
There's plenty of oversight and restrictions, but it's a great way to get into a not-so-great home and make it very nice right away, while getting a good affordable 30 year fixed-rate mortgage at the same time.
Many brokers don't offer FHA loans, and I'd bet that less than 1% have ever done a 203k loan. If this is what you want, find a specialist. Or just find a big bank (Wells Fargo, Citi, Chase), they all do these.Source(s): 10 years in mortgage banking
- Anonymous6 years ago
203k loan is a government program that enables you to purchase a home and finances certain upgrades and repairs as part of your mortgage.
It is a very good program however, getting it is not the easiest process. You have to team up with a great lender who is knowledgeable about it. A good team on your side shortens the closing time by weeks.
- Anonymous1 decade ago
FHA's 203(k) Mortgage
The Section 203(k) program is HUD's primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities.Source(s): HUD website