The workshop was sponsored by First American Title and presented by Patrick Garcia of Homestreet Bank. Patrick announced during the workshop that he will be holding an FHA 203(k) workshop for people interested in buying property using this type of financing.
What type of financing is FHA 203(k)? Briefly stated, it is a loan program offered by HUD (U.S. Department of Housing and Urban Development) that would work for qualifying purchases of "fixer-upper" homes. We all know there are a lot of those around here in Honolulu.
Rehab a Home w/HUD's 203(k) [HUD Information Page]
The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance programs. These programs operate through FHA-approved lending institutions which submit applications to have the property appraised and have the buyer's credit approved. These lenders fund the mortgage loans which the Department insures. HUD does not make direct loans to help people buy homes. [See all.]
A few basic requirements for this type of rehabilitation financing from HUD are:
- It is for owner occupied homes.
- It can be used for Single Family Homes and certain types of Town-homes. Cannot be used with High Rise Condominiums.
- It can be used for rebuilds as long as 25% of the existing foundation is used.
- $5,000 is the minimum loan amount and 110% of the value of the home after the rehabilitation is complete is the maximum loan amount.
If you are considering the FHA 203(k) financing or some type of rehabilitation loan financing, I recommend you attend Patrick's workshop that he is planning on holding in the near future. If you would like me to try to get you a spot in this workshop with limited seating, let me know.