Posted by walthtz on 3/25/13 1:36pm
Msg #462923

203

Got a call from a company that wanted me to close a loan.. They asked If I havd any expierence with a 203 loan?
Anyone have any idea?
Thanks
walter

Reply by dutchcloser on 3/25/13 1:40pm
Msg #462926

203K...FHA Rehab loan.

Reply by Marian_in_CA on 3/25/13 1:45pm
Msg #462932

That's a 203K loan... it's an FHA loan that basically includes the money for rehab/repair construction loan as well as the mortgage all together. It's not for investors, but for people who intend to make the home their primary residence. There are a couple of different kinds of them depending on the rehab portion of the loan... and what kinds of repairs need to be made to the property.

I did one recently that was a "streamline" 203K for a first time home buyer. The house was a foreclosure that was trashed inside and needed a lot of interior repair, but the structure itself was sound. The buyer was a young man who works for a builder and wanted to rehab his own home. He got an amazing deal.

Reply by ME/NJ on 3/25/13 1:49pm
Msg #462934

Get those scraps I leave Walt. You should be out be out all day and night.

Reply by notarydi/CA on 3/25/13 1:54pm
Msg #462937

and, it doesn't necessarily have to be a 203K. It can be just a plain ol' 203 FHA loan regular or streamline. But, yes, a 203K is a rehab loan for FHA. Amazing deals on some of those.

Reply by Marian_in_CA on 3/25/13 1:58pm
Msg #462940

That's true... there are other 203 loans that are just the standard FHA loans. Though, every time I've been contacted and told the loan was a "203" -- they always meant a 203K because it's a little unique.

Reply by Pam/NM on 3/25/13 3:15pm
Msg #462965

What are the notable differences

that a notary should be aware of for these types of loans? I've not had one yet.

Reply by Ronnie_WA on 3/25/13 2:38pm
Msg #462956

The standard FHA purchase loan is a 203B. They should have been more specific in asking you which type of an FHA loan they were referring to.

Reply by BobtheElder on 3/25/13 11:36pm
Msg #463023

If it's a 203K loan, it's a construction/rehab loan, where the repair $$$ is doled out as the work is done...