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Need advice for using FHA loan with HUD home

I am interested in bidding on a HUD home. The listing shows the home as insurable with a repair escrow (~$500). I asked my lender about getting a loan for the property. Because there is a second kitchen, the lender advised that the property would not be eligible for a regular FHA loan and mentioned I would need to use a 203k loan. However, he said I would not be eligible for the 203k loan, even though I have been pre-approved for a regular FHA loan.

- If the property is listed as insurable with escrow, shouldn't I be able to use a 203b FHA loan?

- Does it seem right that I can qualify for a regular FHA loan at one amount, but would not qualify for a 203k loan at a lesser amount?
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July 13 2013 - US
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Answers (2)

Regular FHA and 203k follow the same requirements. So if you qualify for the regular FHA then you can do so with 203k.

203k is a very good program however, getting it is not the easiest process. You have to team up with a great lender who is knowledgeable about it.
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September 22 2013
Know this....it is very difficult to close on a HUD home. (www.HUDHomeStore.com)
A 203k FHA loan requires that you have a certain amount of your own money available for the repair portion of your purchase(not all of the repair portion of the loan is available to you and you must hire a bona-fide contractor to finish all . 203k loans are difficult as well. )
Also make sure that your REALTOR is experienced and has closed recently a HUD Home with a loan like you are seeking.

Good Luck!

James Callas REALTOR
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July 13 2013
 
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