This loan program basically allows the home buyer to use FHA financing to buy and repair/rehab residential real property through pre-approved repair contractors. Many stipulations exist but the program has worked well for many people get a home at a good value and fix it up.
Update 2-18-2012: Two types of FHA 203K programs exist:
Streamline 203K (minor repairs from $5-35K) and Standard 203K (rehab major repairs to new or existing home)
Original post material:
Source: 203K Program
http://www.hud.gov/offices/adm/hudclips/forms/files/92700.pdf – 203(k) and Streamlined (k)
U.S. Department of Housing Maximum Mortgage Worksheet
HUD Mortgagee Letter 2005-50 – List of eligible work items/improvements
Helpful areas of information about 203K loans:
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