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FHA 203K Loans

Can someone explain to me how these loans work for the contractor? I am just curious to see what they need to do on them. by mtb2009 from New York, New York. Mar 18th 2010 Reply

Chris Burns (chrisburns)
#34 ranked lender in Florida - 9 contributions

All the contractor needs to do is provide a detailed bid on the project. The lender will pay them in draws.

Mar 19th 2010
Lisa Dudley (lisadudley)
#17 ranked lender in New York - 3 contributions

It basically works like any construction loan in that you get a monthly draw for up to 6 months and the cost of rehab is rolled into the loan. It can be streamlined with no HUD inspections if the job is under $35K but in Westchester it can go as high as $500,000. Contractor can't be a relative and must carry the usual insurance. It's the way to go in this economy, especially with properties that may have been vacant or may have had destructive former occupants. Oh, it can't be an investment property -- must be owner occupied. Call me if you want a 203K loan in New York State. Lisa Dudley cell: 845-464-9025

Mar 18th 2010
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