FHA 203 REHAB LOAN

[Anonymous]

Hello to All, I looking for advice in reference to the FHA Rehab loan... Came upon a bank owned house which was in the process of being renovated before the prior owners money ran out.  The current state is all of the walls were gutted and replaced only to the new frames and installation (no sheetrock) the bathrooms and kitchen are at the same state (empty) and the floors would need to be replaced so basically the wiring (electric) was done, all new windows, entry doors, water heater, broiler and roof all new but house is not livable. so my question is, does this house qualify under the 203 rehab loan requirements because when i spoke to the realtor he stated that a few offers failed do to no lender wanting to fund a "shell" home.  any insight will be greatly appreciated!!

[ShanetheMortgageMan]

From what you've said it sounds like an FHA 203k loan would work, since it sounds like it's more than $35k of work it'd have to be under the full 203k program (vs. the streamline 203k program).

http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

[BrianB_The_Loan_Professor]

The 203k will work there is a ton of work to do to get this loan and it takes a lot of extra effort. Not to discourage you but dont go in with blinders on either.

The 203k streamline is a lot easier and if you could get the costs to less than 35k to get it done you would cut the extra work down considerably (for qualifying)

Good Luck

Brian