Buying a 203k Fixer Upper
Have you thought about buying a fixer upper? One of the best deals out there is what is called the 203k. This is when you purchase a property, and the government guarantees the loan so that you may borrow the money for the fix up in the same loan. The maximum units that can be contained in a property and still qualify for a 203k loan is 4. Meaning a 4 plex. A home that has been demolished and razed as part of the rehab process is eligible as long as a portion of the original foundation remains as part of the new construction.
It is also acceptable to move a new home no the the mortgaged property but it is required that the proceeds from the sale of the previous location not be released until the properly inspected foundation is securely attached to the new foundation.
Some of the conversions of property include:
1. Single family property to two unit property (duplex).
2. Single family property to three unit (triplex).
3. Single family property to four unit (four plex).
4. Two unit property to four unit property (duplex to four plex).
But keep in mind you cannot exceed the maximum of four units and one of the units must be owner occupied. At this time cooperatives are NOT eligible for the 203k loan program..
IF you are interested in learning more about the 203k program, or any of the other homes for sale in the Chesapeake, Norfolk, Virginia Beach, Suffolk, Portsmouth, Hampton and Newport News please call the experts at All Pros Realty.
To visit our website and view all homes for sale please click here