What is a 203K Loan? Are these government loans, part of the new bailout?

You cannot streamline into a 203K loan. The 203K loan is a HUD loan that has been around for more than 20 years, so no it's not part of the new bailout. Some may argue it was part of the bailout plan in the 80's.What where you hoping the 203K loan would do for you?

From the situation you describe, you would be eligible for an FHA refinance where you can lower your rate or term without much documentation or appraisal. But, you would not be allowed to take cash-out for renovations. The 203K loan does not allow a refinance. It is designed for purchase transactions. If you would like additional cash for repairs or upgrades to the home, you may qualify for a "cash-out" refinance as long as you have substantial equity in the home. We are direct lenders licensed in all 50 states and I would love to provide you with a FREE quote.

Are you looking to make repairs on your home? If not you likely do not need the 203k. A 203B streamline would likely be better for you in that case. What is your current interest rate?Feel free to email me at netherton@nc-mc.com or call at 970-590-5021 and we can prepare a quick quote for you right away.Nic

Hi Janet, 203K loans are an FHA rehabilitation loan and are not currently a part of the governments new bailout plan. A 203K loan enables the home buyer to wrap home rehab costs into their new loan instead of coming up with the funds out of their checking or savings. They would have a contractor get them a quote for all of the improvements and that amount is added on to the new FHA loan. Since you do already have an FHA loan you would be eligible to do an FHA streamline refinance to lower your interest rate without having to provide all of the loan paperwork that you did when you purchased your home as long as you are current on your mortgage payments and do not have any late payments during the last 12 months. Please give me a call (Brian) at 602-688-1339 so I can let you know how much money you would save. My email is besquivel@bncnationalbank.com

The 203k can be used for either a purchase or a refinance. The minimum required investment on a refinance is determined in part by the current equity position. If you are upside down on the home you would need to bring assets to closing on a refinance. I am currently writing a number of 203K refinance loans for folks that have equity but not enough equity to obtain equity financing or a cash out refinance. It is a great program that has been on the shelf for more than 10 years. This market is ideal for 203K financing. Many properties that are being sold are distressed sales, when the seller is having financial difficuly the maintenance on the home tends to slip. A good percentage of the properties on th emarket fall into the catagory of having to address deferred maintenance issues. The 203K loan program allows those issues to be addressed after closing.

Janet, I can offer my clients a 203K Streamline loan to refinance your existing loan and provide funds for up to $35,000 in home repairs or updates. This is a government loan program provided by FHA but not part of the bail out.I would be happy to provide you with additonal information or a free quote. Please call 972-661-5136 or apply online at www.envoy-mtg.com.

This is a loan where you may receive up to $35,000 to fix items needed on the purchased property. Nothing to do with distressed properties. ..... Happy funding, Rudi