FHA 203K rehab loan

[cec2417]

I was wondering if anyone had any experience with this loan.  We are buying a short sale and the property needs about 30,000 worth of work and we were told this would be an option instead of taking out a home equity.  I have read about it online and we are going to meet with a specialist but I was wondering if anyone has used this loan before or knows someone who has.  Seems like the only problem may be recieving the money for the work to be done.  Thanks for any feedback. 

[Anonymous]

I was going to do a 203K loan but could not qualify for the finished price of house.

You have to qualify for the amount the house will cost after rehab and you cannot take out money to do repairs.

You have to have repair done by a contractor and they will receive the funds or if you do it yourself, than you have to front the money first, do the repair, have it inspected and then get reimbursed.

Not fun.

[cec2417]

Thanks for the response.  I was afraid that's how bad it was from what I was reading on line.  Sounds like it is a lot more work then it is worth. 

[ShanetheMortgageMan]

It is a bit of work, and you need a patient seller... but you can get a really good deal with the 203k rehab program.