Below is a description of what a 203k Loan is. But before we go there, there is insight about the REO business that most buyers must know about when it comes to buying REO property. Below is “book smart” stuff.

What we find is buyers lack “street smarts” about the REO market.

For instance, REO’s are usually priced very good and sell very fast. If you’re not ready for that, then looking at REO listings is a waste of your time. There’s more to know too but to know the rest, means you’ve got to pick up the phone and call us.

(631)831-9048 or simply click on the icon below (visible only during hours of operation so if it’s 2am EST (go to sleep)…there is no icon…and don’t call until after 8am – We appreciate your patience).

This video is brought to you by Dean Hartman, Mortgage Guru with Continental Home Loans. This is incredible information about 203K Loans.

The following is directly from the HUD.GOV website:
“Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made.

When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation…“[Go To Hud.gov]