FHA loan and foreclosure question (rate, 203k, lender, streamline)

[Liza54]

I was looking at foreclosures with the idea of borrowing a bit more for all the repairs needed for the home. Now my lender says those are harder to obtain and come w/ a higher rate. So- foreclosure repairs are also to come out of pocket??? That feels like defeating the purpose of looking at these homes

[Daddys///M3]

What you are looking for is an FHA 203(k) or FHA 203(k) Streamline mortgage program. The Streamline is basically the same thing, with a restriction on the amount you can borrow towards repairs and a streamlined (slightly less stringent) process. The lender I broker my 203(k) Streamlines does not have a rate hit, so pricing between the 203(k) Streamline and your regular FHA mortgage is the same. As far as harder to do, there are definitely some additional steps that must be taken and they do take longer than your standard FHA purchase mortgage, but I don't know that I would use the word harder.

[txgolfer130]

There is no rate hit for 203k's. There is a limit to how much you can borrow and how the work is done and how it's paid out to your contractors. If this is how you want to go, there is just a bit more paperwork, and some more hoops to jump through, but you should be able to do it just the same as a 203b.